...Consensus on Growth and Support: Investors remain tethered to easy monetary policy despite the strongest positive consensus in two years on U.S. growth, a belief that the recovery in Europe is sustainable and, perhaps most encouraging, good activity in emerging markets. This constructive backdrop notwithstanding, the majority of investors (70%) in the Fitch Ratings/Fixed Income Forum Survey of professional money managers still view monetary support as either important or critical. This is down from a high of 91% recorded last summer, but with the caveat that at the time 43% placed GDP growth over the coming year at less than 2%. Only a few shared that sober opinion now. Labor Pains: In the new survey, conducted in February and March, 89% of investors saw U.S. GDP growth of at least 2%¡3% over the coming year. Investors shared fairly robust views of lending and housing and expect diminished event risks. However, one area remains strained: employment. While investors see progress in the labor...
