Most fund managers believe equities are fairly valued and 85% think the economy will improve over the next 12 months,
However, they expect companies to begin to drive earnings not through continued cost-cutting but through top-line sales growth. Roughly half would also like to see companies use cash flow to rebuild their balance sheets rather than invest in capital expenditures.
More funds are experiencing net inflows, as well; 26% said their funds were seeing more money come in the door than leave, compared with 16% in July.
