Many Canadians are feeling better about their financial outlook this quarter, as the capital markets enjoy a resurgence of late.

That’s according to according to latest Russell Financial Health Index results. The index — an online calculator that gauges the overall financial health of Canadian investors — increased in the third quarter from the second quarter’s all-time low.

“The results reflect the cautiously optimistic mood of investors, as the capital markets made positive strides. For instance the S&P/TSX Composite Index returned over 10% in the third quarter of this year,” says Fred Pinto, managing director of distribution services at Russell Investments Canada Limited.

“Things are still unsettled but we’re edging towards a recovering economy and a stock market that will continue to rebound in fits and starts. Russell’s experts do not expect to see a double-dip recession. Meanwhile over half of the investment managers we’ve surveyed believe the stock market is undervalued.”

According to the Q3 Russell index, Canadians remain most worried about: having sufficient income for a desired lifestyle; leading an active & healthy lifestyle; and having a reliable source of income.

“Although having a reliable source of income remains a top three issue for Canadians, this area of concern actually declined since last quarter,” says Pinto.

“In addition, the financial impact of medical issues and healthcare needs saw the largest drop in concern in the Russell Financial Health Index during this period — after reaching an all time high level of concern last quarter.”

Canadians were not as concerned about typically longer term situations, such as: providing for children and aging parents needing financial help; leaving assets/inheritance to beneficiaries; and the financial impact of the death of a spouse or a partner.

“What is evident across the board,” says Pinto, “is that having reliable, trustworthy professional advice remains an important factor in maintaining financial health. According to the Russell Financial Health Index, Canadians are not currently as worried about having reliable, professional advice as this concern has declined to 2009 levels – when the market was recovering from the 2008 downturn. More attention and focus may have helped investors feel they are getting good financial advice.”

Russell Investments Canada Limited is a wholly owned subsidiary of Frank Russell Company, headquartered in Tacoma, Wash.

IE