Allocations not reflecting investor sentiment

Investor sentiment has improved from the lows of 2008, but virtually none of that change is being reflected in actual asset allocations, according to Merrill Lynch’s survey of fund managers for January. Among the 205 fund managers polled by Merrill Lynch from January 9 to January 15, only around 24% expect the global economy to weaken further over the next 12 months. That’s a sharp drop from 65% in October. In line with the better growth outlook, corporate profit expectations also im…