More than 90% of U.S. investment managers believe the U.S. equity market is either a bargain or is at least fairly valued, according to a new survey.

The quarterly poll conducted by Russell Investment Group, a Tacoma, Wash.-based investment management firm, found that managers believe the markets have regained a sense of stability, despite a number of negative factors including expected interest rate hikes, rising oil prices and continuing geopolitical uncertainty in Iraq.

“The investment manager community does not appear to be dramatically concerned about the impact of many of the high-profile world events, including interest rate policy, the transition of power in Iraq, and the upcoming U.S. presidential election,” the company said in a release Tuesday. “Ultimately, the managers focus on more fundamental issues such as the improving economic climate and company specifics.”

Randy Lert, chief portfolio strategist for Russell, said the results of survey suggest “the last market cycle of the 20th century has finally ended.”

“After the wild and painful cycle that began with a bubble in 1998, then led to an excessive correction through the spring of 2003, followed by a rally through the end of last year, we seem to have finally begun a new investing environment. From the perspective of professional investors, the 21st century has finally arrived.”

The survey of 107 investment management firms from across the U.S. was conducted between June 7 and June 15. Managers were asked about their outlook for the markets for the next 12 months.

Canadian mangers were not part of the survey, but Russell said the issues that contributed to the performance of the U.S. equity market in the second quarter were similar to the issues that negatively impacted the Canadian stock market. With the build-up to both the Canadian federal election and the U.S. Federal Reserve’s key decision to increase interest rates by 25 basis points hanging over the markets, the second quarter of 2004 posted lackluster results for the Canadian equity market and active Canadian equity managers.

The S&P/TSX Composite Index ended the quarter essentially flat, with six out of the ten sectors of the market falling in value.