Money managers express positive feelings on the likelihood that stocks will outperform bonds in the year ahead, according to a third-quarter study from Russell Investment Group released this week.

Russell Group's third-quarter Investment Manager Outlook showed that the margin between managers bullish on stocks and those who are bearish rose from 19 percentage points in the second quarter to 25 points this quarter.

Though most managers see the market as fairly valued (57%) or undervalued (34%), the share of managers bullish on individual equity classes was lower compared with the previous quarter. Managers are probably becoming concerned about the slowing economy. Eighty-four percent expect the Federal Reserve to raise interest rates less aggressively during the fourth quarter.

A total of 128 managers responded to the survey.

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