Merrill Lynch is predicting that fund managers will increasing switch money back into the old reliables by the end of the year and run down their holdings of technology, media and telecom (TMT) stocks. This indicates that investors with so-called old economy stocks should shortly enjoy some respite although the timing of this move is less than certain.

Merrill Lynch says strong economic growth and rising inflationary pressures should drive a move into value stocks towards the end of 2000.