Eighty-three percent of the 60 institutional managers that Northern Trust surveyed expect corporate earnings to increase in the third quarter, and 84% expect the world economy to improve.

Seventy-six percent expect banks to continue to keep interest rates low, for fear of choking off the recovery, and 46% think stocks in the S&P 500 Index are undervalued. In addition, 88% said they have returned to their normal level of cash holdings.

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