Advisors have become more bullish on their outlook for broader equity markets, the Canadian dollar and commodities, while remaining cautious on Canadian financials and U.S. longer dated bonds, according to the results of a fourth quarter survey by BetaPro Management Inc.

Completed between September 18 and September 30, the Advisor Sentiment Survey compiles the opinions of over 300 advisors representing approximately $20 billion in assets under management,

“This quarter, advisors are most bullish on a diverse group of benchmarks, in particular emerging market equities, commodities and the Canadian dollar,” says Howard Atkinson, president of BetaPro. “This paints a picture of a recovery led by emerging countries, one that demands resources — of which Canada has plenty — to fuel economic growth.”

Survey results reveal that advisors have become more optimistic than last quarter on commodity plays, such as crude oil and silver, both with 68% of advisors bullish, while 60% of advisors were bullish on natural gas and gold.

Expected strength in commodities is also likely supporting optimism for the loonie, with 68% of advisors expecting gains against the U.S. greenback. As well, advisors have increased their positive outlook for emerging markets (68% vs. 47% bullish last quarter).

However, advisors are less bullish on U.S. equities than their Canadian counterparts this quarter (49% for the S&P 500 vs. 62% for the TSX 60), reflecting ongoing concerns for the economy and corporate earnings south of the border.

IE