Yesterday we talked about how individual investors were optimistic about the future of the stock markets heading into the new year. A new survey shows similar bullishness on the part of hedge fund operators. According to a survey by TrimTabs Investment Research and BarclayHedge, 46 percent of the hedge-fund managers surveyed were bullish on equities, up from 31 percent in November.
Only 19 percent of the hedge-fund managers described themselves as pessimistic about U.S. stocks. In November, the number was twice as high, at 39 percent. The current figure is the lowest it's been since the survey started, back in May.
This survey is probably a more significant one than the one of individual investors. As bright and perceptive as individual investors can be, hedge fund managers make their living understanding the relative values of different investments. Plus, they are required to put their money where their mouth is.