Jobs, Politics Weigh On Investors

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    Concerns about job growth, political uncertainty, and market volatility weighed on investment managers even as positive sentiment continued to rise, says a Northern Trust Asset Management quarterly survey. It also found more managers viewed U.S. equities as overvalued and were holding above-normal levels of cash in portfolios. “The outlook on U.S economic growth, job growth, and corporate profits is still largely positive,” says Christopher Vella, chief investment officer for multi-manager solutions at Northern Trust. “However, on the margin, managers are less favourable on a number of economic and market indicators than last quarter.” On the positive side, 42 per cent of managers believe U.S. gross domestic product (GDP) growth will accelerate over the next six months, an increase from 37 per cent in the first quarter survey. Nearly 60 per cent of managers expect job growth to remain stable over the next six months. A third of managers surveyed expect interest rates to increase over the next three months, down from 40 per cent the prior quarter. Two-thirds of managers (68 per cent), expect that the Federal Reserve will raise rates only once from June through year-end.