Canadian investors remain cynical despite a steady thaw in the economy, mostly because they are still unaware of the green shoots.
A Franklin Templeton survey reveals that 50% don’t even know the Toronto Stock Exchange performed well over the past five months — a period that has seen a 31% increase in the S&P/TSX Composite Index. Eleven percent actually believed the market had fallen since March.
In fact, 40% described themselves as timid or suspicious investors, up slightly from 34% in February of this year. Only a few spoke with knowledge about the investment climate.
With skepticism on the rise, the number of Atlantic Canadian investors who described themselves as opportunistic, analytical and risk taking has dropped to 28% from 33% five months ago.
According to Don Reed, president and CEO of Franklin Templeton Investments Corp. the poll results highlight the conflict in investor confidence. “On the one hand, markets are recovering while on the other, many investors are feeling anxious and uncertain.”
Only about 30% of Canadian investors are ready to seize the opportunity and take advantage of improving markets. “Investors who have participated have benefited from higher stock prices,” Reed says. He strongly encourages investors to reconnect with their financial advisors.
Conducted by Angus Reid Strategies on July 2, 2009, the online survey had a +/- 3.1% margin of error for the total sample of 1,003 adult Canadians.
The Franklin Templeton’s team of global investment experts will be analyzing the survey and speaking about how investors can seize the opportunity of improving markets at the Investment Outlook and Opportunities Forum in Toronto on July 23, 2009.
(07/14/09)