75% of Professional Investors Foresee Positive Returns in the Stock Market in the 12 Months Ahead

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AFG's Market Forecast Survey polls institutional investors and investment advisors to extract their unique perspective on investment and economic issues. • 2% of professional investors believe the stock market will depreciate by more than 10% • 93% of Professional Investors do not think we should have another stimulus package

We created the Market Forecast Project to have an ongoing objective perspective about the key economic and investment issues that investors face every day. Further, by only allowing investment professionals to participate in the survey, we have identified the most relevant group of professionals to provide ongoing insights into these issues

"We created the Market Forecast Project to have an ongoing objective perspective about the key economic and investment issues that investors face every day. Further, by only allowing investment professionals to participate in the survey, we have identified the most relevant group of professionals to provide ongoing insights into these issues," says Rafael Resendes, Co-Founder of The Applied Finance Group

An interesting result of the most recent survey is that 80% of the respondents expect the economy to improve during the next 12 months, although 56% of the respondents feel the economy is on the wrong track.

This seemingly contradictory result is understood in the context of many comments collected during the survey that while most professional investors believe current fiscal policies will hinder growth, the market will react to current conditions and grow from the deep slump experienced in the past 18 months, but at a slower rate than its potential.

Last week The Applied Finance Group (AFG) launched AFG's Market Forecast Project, a survey taken exclusively by professional investors, with the goal of proving a set of ongoing insightful investment ideas and themes from AFG's broad interaction with professional money managers. Some of the findings from the first MFP Survey include:

Stock Market Appreciation in the next 12 months:

  • 50% of professional investors foresee that the market will appreciate between 0% to 10%, while
  • 23% believe the stock market will appreciate greater than 10%, only
  • 2% of professional investors believe the stock market will depreciate by more than 10%

Economic Issues:

  • 93% of Professional Investors do not think we should have another stimulus package
  • 87% of Professional Investors oppose Cap and Trade as currently proposed
  • 76% of Professional Investors believe the housing market will bottom in the next 12 months

The longer term goal of the Market Forecast Project is to have a baseline to understand professional investors' expectations, and beliefs regarding the critical market, economic, and fiscal issues facing the economy.

For a complete copy of the survey, click here.

About The Applied Finance Group (AFG):

AFG is a global institutional equity research provider. The Applied Finance Group (AFG) helps investment advisors, institutional investment, consulting, corporate firms globally in accurately measuring corporate performance and identifying mispriced equities. Learn more about AFG at: http://www.EconomicMargin.com.

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Saul Marquez
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