Canadian investment advisers are optimistic about domestic equities and commodities going into 2014’s third quarter.
A Horizons ETFs Management Canada adviser sentiment survey published July 30 found that 61% of investors were bullish on the S&P/TSX 60 index. This is up 14 percentage points from a quarter ago, but remains below the optimism in Q1 (74%).
Advisers were also optimistic about the S&P/TSX Capped Energy Index, with 70% saying they are bullish, compared with 53% in Q2.
Sentiment about the Canadian dollar (relative to the U.S. dollar) increased to 25% in Q3, compared with 20% in Q2. Over the course of the previous quarter, the dollar fluctuated between $0.917 and $0.938.
“The market keeps expecting interest rates to rise, and as a result, the demand for the Canadian dollar has slowly recovered from its dip below 90 cents (U.S.) in early 2013,” said Howard Atkinson, president of Horizons ETFs.
“While the current recovery in the dollar is minor, it further reflects the positive sentiment advisors are displaying towards domestic asset classes in Q3, which is critical for Canadian investors looking to keep their assets north of the border.”
Horizons publishes its investment adviser sentiment quarterly.
