Canadians are bullish about global investment markets but can’t keep their emotions in check when it comes to decision-making, according to new research from Franklin Templeton Investments Corp.
Of Canadians surveyed who expressed an opinion, 54% expect stock markets to rise, while only 19% believe markets will fall.
Emerging international markets such as Brazil and China were identified by 61% of Canadians surveyed with an opinion as presenting the greatest investment opportunities in the next decade.
The survey results were in released Wednesday at Templeton’s Investment Outlook and Opportunities Forum in Toronto.
“Canadians agree: it’s time to invest and increase global exposure,” says Don Reed, president and CEO of Franklin Templeton. “Among Canadians, the bulls outnumber the bears almost three to one — and more than twice as many investors see opportunity in markets outside Canada.”
This global sentiment isn’t reflected in the significant home-country bias many Canadian investors have in their investment portfolios. The net value of Canadian equity mutual fund assets outweighs global and international equity mutual funds by a two-to-one margin.
The survey found Canadians have a difficult time keeping their emotions in check when it comes to their investment portfolio. Seventy per cent of respondents feel anxious, reluctant, easily swayed, get caught up in the market’s buzz or simply don’t know how to describe their feelings. Only 30% of respondents said they “never allow emotions to affect my investments.”
Since early 2009, Franklin Templeton has been monitoring Canadians’ investment personalities using five common investment types: timid, suspicious, analytical, opportunistic and risk-taking. Sentiment is slowly improving in 2010.
Thirty-five per cent of Canadians describe themselves as either suspicious or timid — the categories that prevent investing — down from 40% in previous surveys. The number of investors describing themselves as analytical, opportunistic and risk-taking has remained constant at about 30%.
“Canadians’ investment personalities have been remarkably constant after the market meltdown of late 2008, and that’s why the recent drop in suspicion is significant,” Reed says. “They need independent, rational advice if they want to meet their investment objectives. Financial advice is the key to building long-term wealth and meeting investment goals.”
The survey of 1,002 adult Canadians was conducted the week of June 28 by Angus Reid Public Opinion. The margin of error for the total sample is +/- 3.1%, 19 times out of 20.
Canadian investors feeling bullish yet need an emotional rescue
Many believe markets will rise but fail to keep emotions in check
- By: IE Staff
- July 22, 2010 July 22, 2010
- 13:10