Canadians are decidedly more upbeat about the local economy and the investment climate than Americans, a poll by Franklin Templeton Investments has found.

In its latest global survey of investor sentiment, Franklin Templeton reports 50% of Americans believe their local economy has deteriorated, a view shared by only 28% of Canadians when asked about Canada’s economy. When asked about the economic outlook for the next one to three years, 41% of Americans have a pessimistic view versus 27% of Canadians.

Canadians are more bullish when it comes to the investment climate, too. The survey found 41% of Canadians predict positive returns in the current market environment; whereas, 37% of Americans shared this positive outlook. Americans were more pessimistic with 26% forecasting negative returns compared with 14% of Canadians. When asked about specific asset classes, Americans were more likely to predict losses in 2012 for stocks and bonds compared to Canadians.

“Franklin Templeton’s latest investor research has found more confidence north of the border,” says Don Reed, president and CEO of Franklin Templeton Investments Corp. in Toronto. “Canadians have had more to cheer about in recent years than Americans. Our economy and stock market has improved smartly from the lows of 2009 while the U.S. has had a more challenging recovery.”

Conducted earlier this year, the survey polled more than 20,000 individuals in 19 countries that represent 70% of the world’s GDP.

Despite their differing outlooks on fiscal issues, Canadians and Americans share a strong home country bias. Sixty-five per cent of Canadians and 63% of Americans will invest in their own country this year. Half of Canadians and Americans surveyed also believe their home country will offer the best returns.

“Global uncertainty has left investors cautious with almost four in 10 investors around the world believing their home country represents the best investment opportunity,” says. Reed. “It’s important for investors to work with a financial advisor and ensure they are well diversified by asset class and geography to limit risk and meet financial goals.”