A recent survey of million- aires in Canada and the U.S. conducted on behalf of Toronto-based BMO Harris Private Banking has found the majority of respondents have bounced back financially from the 2008 financial crisis and ensuing economic recession.
The survey, conducted by Pollara Inc. of Toronto, found that 54% of high net-worth (HNW) Canadians polled felt they are better off than before September 2008; only 11% said they are worse off; and 36% reported that their financial condition is unchanged.
In the U.S., it’s even more positive: 61% of HNW Americans said their fortunes have improved and only 7% said they have worsened.
Among the Canadians surveyed who felt better off than in September 2008, the highest percentage (64%) were in British Columbia, followed by the Atlantic provinces (60%) and Quebec (56%). Ontario was at the bottom of the list, with only 46% of survey participants feeling better off.
Regarding the economic outlook, 47% of HNW Canadians expect the economy to improve this year, while 61% are optimistic about the U.S. economy this year. Affluent Americans are more optimistic about what the future holds for the Canadian economy than those who actually live in Canada, with 61% of American survey participants saying they expect growing prosperity for Canada. About 55% of HNW Canadians expect gains in Asia and a smaller 19% expect Europe to improve.
The poll also found that HNW Canadians are pleased with their investments. A substantial proportion (86%) say they are comfortable with their savings and investment plan, and 70% expect stocks to generate the most solid returns during the next five years, ahead of real estate (39%), bonds (24%) and cash (19%).
Canadian survey participants were most bullish about the financial services and energy sectors, with more than 70% of participants expecting healthy returns in these sectors. Fewer than a third of participants were bullish on manufacturing.
Americans were most positive on the technology sector (80%) and about 50% were optimistic about manufacturing.
Canadian millionaires are enjoying the benefits of their wealth, with most spending as much or more than they did prior to September 2008, which reflects confidence in the economy and helps to spur economic activity.
Favourite activities for increased spending include entertainment and leisure (89%), travel and vacations (86%), club memberships (78%), clothing and accessories (75%) and hobbies (72%).
The online survey was conducted this past spring, using a sample of 305 Canadians and 482 Americans with at least $1 million in investible assets.
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