Canadian advisors bullish on second half 2013

Canadian advisors bullish on second half 2013

Canadian advisors bullish on second half 2013

Advisors are gung ho about global capital markets – including still-wobbly US equities – according to a new report.

The Summer 2013 Sun Life Advisor Sentiment Index suggests those industry professionals bullish on the market outnumbering the bears by more than two to one. More specifically, 54% of respondents are feeling optimistic about market performance, generally, and about US equities, in particular.

“The US equities market has seen record highs in the first half of 2013,” said Sadiq S. Adatia, chief investment officer of Sun Life Global Investments. “This market has consistently performed well and this trend is predicted to continue.”

While the US markets are seeing upward movement, advisors are overall bearish on the Canadian economy for the second half of 2013, with 44% expecting zero growth and almost 10% expecting an outright contraction.

Among advisors surveyed 22% are at least somewhat bearish on the S&P/TSX Composite Index with nearly 40% expecting the index to be flat by the end of the year. The only geography on which Canadian advisors were more pessimistic was Europe.

“The Canadian economy has weathered the financial downturn fairly well,” said Adatia. “Though no growth is expected over the next six months, we believe the economy will remain stable during this period.”

The Ipsos Reid poll conducted between April 5 and May 22, sampled 345 Canadian financial advisors. Participants represent a cross-section of the Canadian financial services industry, including affiliated and independent financial advisors.

Some 53% of survey respondents were members of the Mutual Fund Dealers Association and 44% were members of the Investment Industry Regulatory Organization of Canada (IIROC). The remainder held dual membership.