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Canadian investors cautiously optimistic

By Andrew Rickard | August 02 2016 11:30AM

According to Manulife's most recent Investor Sentiment Index, Canadians are more confident about how both equities and fixed-income investments will perform. People in Quebec are particularly optimistic about their financial future.

Manulife recorded a 6 point increase in its Investor Sentiment Index in May, and points out that this is the largest gain since 2011. The index is based on investor views and confidence levels concerning a range of asset classes, and has increased from +16 last December to +22 at the end of May. Manulife notes that the largest spikes in investor confidence were in stocks (+11) and fixed income (+13), both of which have increased by ten percentage points in the last six months.

Quebecers particularly upbeat

The survey also asked people how close they are to meeting their financial goals: half of the respondents currently believe they are on track, while 41% think they will be in a better financial position in two years. People in Quebec were particularly upbeat, where six out of ten investors say they are on track or ahead of schedule with their financial goals.

“We’re seeing some major differences in Quebec compared to the rest of the country,” comments Philip Petursson, chief investment strategist at Manulife Investments. “The increase in sentiment among Quebecers may be related to the improvements in the province’s economy and labour market.”

Although investor sentiment is on the rise, Manulife notes that many Canadians remain cautious; 24% of those surveyed said that cash is their top investment choice for the next 12 months. What's more, 14% of Canadians say they are investing less in their RRSPs and 12% are putting less into their TFSAs.

 

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