In a recent survey of 127 institutional investors, TheMarkets.com found that nearly 40% of those surveyed think that the market has already rebounded, hitting its bottom earlier this year.

This number signals a swing in optimism from a similar survey in March, in which 17% of respondents indicated they expected the bottom before the end of the first half of the year. Of those respondents who think the bottom is yet to come, 91% expect it within the next twelve months. The survey, reaching investors in 24 countries, was conducted by TheMarkets.com, a leading provider of research, estimates and workflow solutions to institutional investors worldwide.

With over 80% of investors anticipating that the S&P 500 will return to 1200 by the end of 2011, the results of the survey also indicate that investors now expect a faster market recovery to pre-recession levels than they did in March, when just over 50% reported the same expectation. Additionally, nearly 80% of investors now expect the S&P 500 to return to 1500 by the end of 2013, versus under 60% in March; nearly a quarter expect it to return to 1500 by the end of 2011, versus 12% in March.

"Similar to what we saw in March, we found that portfolio managers continue to be more optimistic than analysts, with fully 50% of portfolio managers positing that we've already hit the bottom, versus 30% of analysts," said David Eisner, CEO and President of TheMarkets.com. "We also continue to see a slightly more optimistic outlook outside the U.S., although we're seeing less of a disparity there than we did in March."

Surveyed investors expect that key sectors of focus over the next 12 months will be energy, financials, healthcare and basic materials. "Over the past months, we have seen investor focus heavily reflect activities in Washington, D.C.. In addition, the near doubling of investor interest in basic materials since March might suggest new concerns about inflation," said Eisner.