Canada’s financial advisors are more optimistic about the performance of U.S. markets compared to any other major global equity market, including Canada, over the next 12 months according to the Sun Life Advisor Sentiment Index released today by Sun Life Global Investments. The survey, conducted by Ipsos Reid between April 23 to May 4, 2012, measures Canadian financial advisors’ sentiments on capital markets and key economic factors.
Seventy-eight per cent of advisors are optimistic about U.S. markets (including the Dow Jones Industrial Average and the S&P 500 Index) compared to 60% of advisors who say they are optimistic about Canada’s S&P/TSX Composite.
Advisors see a variety of global economic factors threatening the Canadian economy over the next year:
- 57% said a significant slowdown in the Chinese economy could pose a threat to Canada in the next 12 months.
- 43% said the same about a breakup of the eurozone.
- 39% said a sovereign debt crisis is among the top three risks to Canada.
- Other major threats they saw were weak consumer spending, the price of oil and inflation.
“While advisors raise valid concerns, we have also found through our past research that some domestic issues threaten the Canadian economy,” says Sadiq Adatia, Chief Investment Officer, Sun Life Global Investments. “We believe Canadians continue to add debt even though they’re already shouldering significantly large amounts. Savings are low and the housing market grows more overheated every day.”
Advisors also believe the effects of the 2008 financial downturn are still being felt by Canadian investors:
- 48% of their clients are more risk averse since 2008.
- 37% believe their clients are pessimistic about the current market conditions.
Fear of losing capital is the number-one concern advisors hear from their clients, followed by fear that their investment performance won’t be enough to achieve their lifestyle goals. Also, 60% fear that the money they have invested won’t be enough for retirement and 59% fear that if markets crash, they won’t have enough time to make up any losses before retirement.
For more key findings and results, read the full report on the Sun Life Advisor Sentiment Index.
Talking with an advisor can help ensure you’re on track to meet your financial and retirement planning goals. Don’t have an advisor? Visit Sun Life Financial Advisor Match to help you find one in your area.