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Investors see bottom in second half of 2009

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Eighty-five percent of institutional investors surveyed by say they believe the market will bottom out before the end of the first half of 2010, with the majority of those expecting the bottom by the second half of 2009.

The survey of 160 global investors indicated they expect a slow recovery of the S&P 500 to pre-recession levels. More than 80 percent of investors do not expect the S&P 500 to return to 1200 until 2012, and more than 40 percent of investors do not think it will return to 1500 until after 2013.

The results showed that while traditional asset managers expect the market to bottom sooner than do their hedge fund counterparts, they see the recovery taking longer. Additionally, U.S.-based respondents were slightly more pessimistic about the timeframe of recovery than those based outside of the U.S.; both groups had similar expectations about market bottom.

“We also saw that, across the board, the sectors that investors expect to receive the most focus over the next twelve months are financials, energy and healthcare,” said David Eisner, CEO and president of in a statement. “What’s interesting is that we’re seeing a direct tie between investor focus and governmental focus. In addition to looking to sectors where we typically see early signs of a turnaround, such as consumer cyclicals or transportation, investors are honing in on the areas where expected legislation stands to have the greatest impact.”