Aug. 16, 2011, 12:06 p.m. EDT
Corporate profit outlooks will worsen: survey
But 42% of investors think global recession won’t happen this year
By Dawn Lim, MarketWatch
NEW YORK (MarketWatch) –– Investor sentiment has taken a sharp turn in the past month as more fund managers expect company profit outlooks to worsen and brace for a world economic slowdown, according to a survey released Tuesday.
A Bank of America Merrill Lynch poll shows that 13% percent of respondents believe that the world economy is headed into weaker growth. That’s a U-turn from July, when 19% were confident that the economy would improve. The global survey tapped 176 managers handling $551 billion of assets.
A net 30% of the panel projected worsening corporate earnings outlooks in the next 12 months, the biggest downward swing in the survey’s history. In July, 11% forecast an improvement in profits.