While sentiment is generally positive on U.S. equities, with 65 per cent of Canadian investment managers indicating they have a positive outlook for that asset class, this is down from 72 per cent in the first quarter, says Russell’s second quarter ‘Investment Manager Outlook.’ By contrast investors have become far more cautious on emerging markets, with only 40 per cent bullish and 35 per cent bearish on the outlook for that region. With Europe still wrestling with debt woes and political unrest, sentiment towards the EAFE region is unsurprisingly quite bearish. Only 25 per cent of investment managers have a positive outlook on EAFE equities, down from 44 per cent in the first quarter. Meanwhile 40 per cent are bearish on the region, a significant increase from the 11 per cent who were bearish in the first quarter.
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