We've noted the surging optimism about asset managers' prospects in 2007. Money managers as a class have fared well against the market, but discern a lot of upside. Which brings us to BlackRock, which posted strong 2006 earnings yesterday. The asset manager, which is now almost half-owned by Merrill Lynch, raised its 2007 profit forecast to levels that were nicely above Wall Street's average estimates. The firm is now guiding people to earnings of $7.25 to $7.55 per share. Most analysts were in the $7 per share range. The issue is whether other companies are also sensing a similar surge. Those with an international perspective and strong institutional sales may also surprise on the upside. Others may be poised to tap the 401k bonanza.

For more on BlackRock:
- here's an update