Institutional asset managers displayed an aura of optimism towards the positive swing in financial markets and the U.S. economy, with many believing that a double-dip recession is unlikely, and unemployment rates will ease up, a new study claims.

Respondents to Northern Trust Global Advisors’ (NTGA) third quarter survey, which was issued in mid-September, explained that they were hopeful that the recession dips were a thing of the past. Approximately 65% believe the U.S. will avoid a double dip recession, and 67% project that the nation’s jobless claims will “decrease over the next six months,” the Oct. 14 announcement stated.

Also highlighted in the study was the expected impact of the upcoming congressional elections, and their possible influence on financial markets. More than three quarters feel investors will “react favorably” should the November elections “result in a change of party control.” Specifically, roughly 84% of this group view Republican control of the House or the Senate as being a positive shift. 

“The most notable trend is toward a sense of stabilization within equity markets, as well as an uptick in global growth expectations,” Chris Vella, global director of research for NTGA, said in the press release. “As evidence of improvement in the macro environment, most managers also appear confident that a double-dip recession is unlikely.”

From this pool of 83 participants, which include fixed-income and equity managers in both value and growth styles, more than 70% said that inflation and interest rates will remain unchanged. The managers expressed that U.S. equities, emerging markets and Japanese equities are undervalued. Also, the respondents noted that technology, emerging markets, healthcare industrials and energy are the “top five most attractive market segments.”

Additionally, aversion to risk declined, and 46% anticipate that market volatility is expected to increase over the next half year, the report stated.

Currently, NTGA, the Chicago-based Northern Trust subsidiary, has nearly $31.5 billion in assets under management for institutional and personal clients.