Canadian investment advisors feel confident about how domestic stocks and commodities will perform over the next three months.

On July 30, Horizons ETFs released the results of their Advisor Sentiment Survey for the third quarter of 2014. The survey revealed that 61% of Canadian advisors were bullish on the S&P/TSX 60 Index, up from 47% in the previous quarter. The outlook for U.S. equities also remained positive, with 57% of advisors bullish on the S&P 500 for the third quarter, up slightly from the 53% reported last quarter.

Canadian advisors are also keen on energy investments, with 70% expecting positive returns on the S&P/TSX Capped Energy Index in the third quarter compared to the 53% that were bullish on this index last quarter. Horizons notes that the outlook for natural gas was up as well, with 48% of respondents predicting positive returns for the upcoming quarter, compared to the 30% that were optimistic last quarter.

"Canadian advisors are seeing a lot more value in domestic asset classes than their U.S. counterparts," comments Horizons ETFs president Howard Atkinson. "With the bull run we've had in the U.S. since December, advisors believe that U.S. equities are overvalued, whereas the Canadian market is ripe for growth and returns."