Growing numbers of fund managers are diverging in their opinion towards the global economic outlook and corporate profits in the wake of the September 11 terrorist attacks in the United States, a survey shows.
Among the 253 fund managers surveyed from all over the world, most of them believed that the global economy and profits would recover.
Almost a quarter of those surveyed, however, thought that the global economy would grow either much stronger or much weaker over the coming year.
'The terrorist attacks in the US have created a defining moment where fund managers need to hunker down for recession or take the plunge into cyclicals,' said David Bowers, a strategist of Merill Lynch Global Investment, which conducted the survey between October 4 and October 11.
The survey, supported by a Merill Lynch buy-side indicator, shows an enduring upbeat outlook for global equities over the next 12 months.
The indicator shows 69 per cent of fund managers expect the market to move up, compared to 74 per cent in August when the survey was last carried out.
There will be a major shift from US equities to eurozone equity markets according to the survey, as almost 25 per cent of managers thought US equities would have the worst performance in the coming year compared to 16 per cent in August.
