A majority of financial analysts in believe North American markets will continue to fall, according to a poll released today.

When asked if the North American markets have hit rock bottom, 61% of Canadian Chartered Financial Analysts (CFA) respondents said no and only 17% replied yes. “There is lack of confidence in the financial system,” said one respondent. “Both Canadian and American economies are in good general shape except for problems in the financial sectors. The bottom is much deeper than most of us could imagine.”

As well, a strong majority of financial analysts believe that investor perceptions of safe investments have been tarnished.

According to the poll, which was prepared for Business News Network, 78% of Canadian Chartered Financial Analysts (CFA) said they believe so-called safe investments no longer have the same reputation. The biggest concerns expressed by individual investors were doubts about the U.S. market and economy due to issues surrounding sub-prime mortgages and the shrinking availability of credit.

“Investors feel that uncertainty about the future is the biggest reason for market volatility,” said a respondent. “They wonder if all of the bad news has been discounted or if there is more ‘out there’ that has not yet been fully reflected in stock prices.”

The poll, the second time CFA charterholders across the country have been questioned, looks into investor reaction to market volatility as well as core strategies in designing investment portfolios.

According to a news release, of the 845 investment professionals who responded to the poll, nearly 60% employ the use of asset mix to structure volatility resistant portfolios, while an additional 20% use security selection.

As well, 64% said they proactively took steps to prepare clients for volatile times, while 32% said it didn’t apply to them.

As the asset-backed commercial paper crisis in Canada enters into a possible restructuring, 23% of the poll’s respondents said they had clients directly affected by ABCP.

The poll was conducted between April 15 and 17 and CFAs from all 12 Canadian CFA societies across the country participated.