Despite recent market fluctuations, 55% of investors remain bullish about the market and expect the Standard & Poor’s 500 to increase between now and the end of the year.
According to MoneyShow.com’s Investors’ Sentiment Indicator, which was released Monday, 13% of investors expect the S&P 500 to rise more than 10%, but 61% believe we are in a volatile market that won't make big moves either way for awhile.
Fifty-nine percent of investors said that they expect the Federal Reserve to keep rates where they are and either end, maintain, or increase monetary stimulus for the rest of the year. And of those investors polled, about 91% expect an increase in inflation for the rest of the year.
Almost 70% of investors predict the housing market to bottom and the recession to end after 2011. Seventy-eight percent also expect the unemployment rate to be between 7% and 9% by the end of the year. Precious metals, small-or mid-cap US stocks, and large-cap US stocks are the asset classes investors anticipate performing best for the remainder of the year, with approximately 60% of investors expecting those categories to remain strong.
The MoneyShow.com Investors' Sentiment Indicator polled 787 investors from its members list between May 2 and May 6.