Fund managers remain relatively positive about the prospects for global equity markets, even after the recent market downturn, according to Merrill Lynch’s monthly fund manager survey for August, MarketWatch reports.
“Fund managers have turned more risk adverse but still believe equities offer value, particularly relative to bonds,” the survey says.
The recent equity market correction around the globe has been largely driven by investors assessing the ongoing fall out from the recent subprime mortgage market woes in the U.S. and its impact on the credit markets.
“The panel seems more inclined to regard the current turmoil as a buying opportunity for equities: risk aversion is extreme, liquidity levels are high and equity valuations are undemanding,” says the survey’s authors.
Merrill Lynch polled 181 managers running $599 billion in funds.
Allocators are more positive on the equity markets overall, with a net 40 percent stating that they believe it’s unlikely world stock markets will be lower in six months time, up from 28 percent taking this view in July.