More than half of money managers, 57%, say the stock market is currently undervalued, according to Russell’s latest Investment Manager Outlook. Only 7% of managers feel otherwise.

“What’s interesting is that these results are from the last month in August, which was a tough time in the market with talk about a double dip. But most managers said the market was either undervalued or fairly valued, said Mark Eibel, director of client investment strategies at Russell. “They weren’t overly bullish but they were realistic and they didn’t let what was going on in the market sway their views.”

Fund managers say corporate spending to accelerate over the next year, which will be the principle driver behind the economic recovery they expect. Fund managers aren’t so hot on consumer spending—only 30% expect growth in the consumer discretionary sector—but they are bullish on technology (69%), energy (51%) and materials and processing (48%). Fund manager support emerging market equities saw a 10% jump, to 71%.

Eibel expects positive news about corporate earnings to maintain the market’s upward trajectory until the mid-term elections, the results of which will dictate market performance for the remainder of the year. As for August’s negativity, “the market oversold in August, so I’m not surprised September has played out the way it has,” Eibel says.