Canadians remain skeptical when it comes to investing, but appear to be paying little attention to stock market performance, according to a survey released by Franklin Templeton Investments Corp. on Tuesday.

In Franklin Templeton’s latest national survey of Canadians’ attitudes toward investing, conducted by Angus Reid Strategies in early July, 40% of respondents described themselves as timid or suspicious investors, up from 34% in February of this year.

But few Canadians speak with knowledge about the investment climate. Half of more than 1,000 respondents had no idea how Canada’s leading stock market index performed over the past five months — a period that has seen a 31% increase in the value of the S&P/TSX composite index.

Only 9% of respondents were aware that the S&P/TSX index had returned more than 20% in value since March. In fact, 11% of investors erroneously believed the market had fallen in value since March.

“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,” said Don Reed, president and CEO of Franklin Templeton Investments Corp. “The investors who have participated have benefited from higher stock prices.”

As skepticism has risen, investors who describe themselves as opportunistic, analytical and risk-taking have dropped to 28% from 33% five months ago.

Investors in Saskatchewan and Manitoba remain the most bullish, with 20% describing themselves as risk-taking, 2.5 times the national average of 8%. But a growing number investors in these provinces are also becoming more cautious when it comes to investing: respondents describing themselves as timid or suspicious investors surged to 43%, up from 28% in February.

Alberta investors are less skeptical than most Canadians when it comes to investing: 35% of respondents in Alberta describe themselves as timid or suspicious investors, down from 36% in February.

British Columbia and Alberta were the most knowledgeable investors in the country with 14% and 12% of respondents aware that the S&P/TSX index had returned over 20% in value since March.

On the other end of the spectrum, investors in Atlantic Canada seem to pay very little attention to market performance. Of the respondents in the Atlantic provinces, 61% had no idea how the TSX had performed over the past five months.

With little knowledge of market performance, investors in these provinces are far less likely to take risks in investments than most Canadians. The proportion of Atlantic Canadian investors who describe themselves as opportunistic, analytical and risk taking plunged to 19% from 32% five months ago.

IE