Seventy percent of investors believe the S&P 500 will increase by the end of the year, compared with only 33% who were bullish on the market in August, a survey by MoneyShow.com found.
Nonetheless, 46% of investors have 20% of their portfolios in cash or cash equivalents.
MoneyShow.com believes that as this money comes off the sidelines, it will continue to boost the market.
Investors are very much divided on interest rate movement, however. Forty-one percent believe rates will stay the same and monetary stimulus will end, 30% believe interest rates will rise and monetary stimulus will end, and 29% think rates will remain unchanged and monetary stimulus will continue or be increased. With 70% anticipating that interest rates will remain low, 56% believe inflation will remain in the 1% to 3% range.
The majority of investors, 64%, think the housing market will bottom after this year.