With over 80% of investors anticipating that the S&P 500 will return to 1200 by the end of 2011, the results of the survey also indicate that investors now expect a faster market recovery to pre-recession levels than they did in March, when just over 50% reported the same expectation. Additionally, nearly 80% of investors now expect the S&P 500 to return to 1500 by the end of 2013, versus under 60% in March; nearly a quarter expect it to return to 1500 by the end of 2011, versus 12% in March.
"Similar to what we saw in March, we found that portfolio managers continue to be more optimistic than analysts, with fully 50% of portfolio managers positing that we've already hit the bottom, versus 30% of analysts," said David Eisner, CEO and President of TheMarkets.com. "We also continue to see a slightly more optimistic outlook outside the U.S., although we're seeing less of a disparity there than we did in March."
Surveyed investors expect that key sectors of focus over the next 12 months will be energy, financials, healthcare and basic materials. "Over the past months, we have seen investor focus heavily reflect activities in Washington, D.C.. In addition, the near doubling of investor interest in basic materials since March might suggest new concerns about inflation," said Eisner.