Even as the world markets continued to slide on Monday—with $800 billion erased from the U.S. markets since the decline began on Feb. 27—giant money managers said they continue to have faith in the market will rise by more than 10% over the next year, Bloomberg reports.
The 15 strategists that Bloomberg tracks were sticking to their optimistic outlook, predicting a 12% rise in the S&P within the next 12 months. Putnam Investments and BlackRock said stocks are cheap, and Citigroup and UBS are recommending that clients expand their equity positions.
“We’re more favorably disposed to the U.S. market than we were at the end of last year,” said Kevin Cronin, chief investment officer at Putnam, who called the attention that has been given to the selloff “overblown.”
Robert Doll, CIO at BlackRock, agrees: “This isn’t going to lead to a major bear market. Out of this will come some better buying opportunities.”