Canadian advisors are bullish on the United States.
A Sun Life Global Investments study finds 78% are optimistic about the performance of U.S. markets over the next year, more so than any other major global equity market, including Canada (60%).
“How well the U.S. economy is doing continues to surprise many people and Canada’s advisors are taking notice of this upward trend,” says Sadiq S. Adatia, chief investment officer, Sun Life Global Investments.
Additional findings from the study include:
- 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;
- Weak consumer spending (36%), the price of oil (35%) and inflation (22%) also pose threats to our economy;
- 71% believe Canada’s overnight interest rate will be higher on June 30, 2013 than it is today, while 69% believe the Consumer Price Index will rise 1% to 2% in the next year.
And when it comes to clients:
- 48% said their clients are more risk adverse since 2008;
- 37% believe their clients are pessimistic about the current market conditions;
- Investors most fear losing capital (62%);
- Investors also fear the money they invest won’t be enough for retirement (60%), and if markets crash, they won’t have enough time to make up losses before retirement (59%).