According to a survey released today, Canadian investment advisers remain bullish on equities and commodities in the third quarter, despite poor returns in many of those asset classes last quarter.
The Advisor Sentiment Survey conducted by Horizons Exchange Traded Funds Inc. indicated that 2011’s second quarter was a difficult time to be an investor, with most classes delivering negative returns over the course of the quarter.
Howard Atkinson, CEO of Horizons, said: “The results of this survey seem to suggest that Canadian advisers may view the pullback that occurred last quarter as a buying opportunity rather than a warning.
“In fact, oil prices declined much more than stocks last quarter, relatively speaking, but the bullish sentiment of advisers actually increased for crude oil, which again seems to suggest advisers may have a longer-term bullish outlook for a number of asset classes.”
Sentiment on crude oil increased 12% over the last quarter to 53%, despite the fact crude oil futures decreased 11.5%.
The survey also saw bullish sentiment increase on gold bullion and gold equities – one of the few asset classes to deliver a positive return in 2011’s second quarter.
Bullish sentiment on copper also increased, from 50% to 52%, over the last quarter, after the industrial metal delivered a slight positive return for the quarter.
“The fortunes of copper are closely tied to China,” Atkinson said. “And with economic growth remaining robust there, speculation continues that copper could continue to see its price rise over the coming quarter.”
Jennifer Harrison
Twitter: JHarrisonBIV