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Komfie Manalo, Opalesque Asia:

A majority of institutional investors and hedge fund managers polled by BarclayHedge expect that equity markets will rise if tax reform is enacted by the U.S. Congress and an even greater percentage expect that budget deficits will also rise. BarclayHedge said that seven in ten of those surveyed see the tax reform pushing equity markets up.

In addition, the survey said that only 12% of managers and investors believe that corporations will use their tax savings to expand operations or add jobs.

"Fund managers and institutional investors are strongly bullish when it comes to how tax reform would help equity prices," says Sol Waksman, founder and president of BarclayHedge. "But, at the same time, there is little belief that the current tax reform proposals will improve the deficit or be used to grow the economy in general."

When asked of their expectations on the equity markets if the president received what he wants in the tax bill, 68% of the participants said they see the market to gain. Only 16% expect either a small or sharp drop in prices while 16% called for no change.

Tax reform not expected to boost hiring

Survey respondents were also asked how they expected companies to apportion their tax savings and only 12% expect that corporations will expand their facilities or hire more workers......................

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