- TD Investor Insights Index reveals market confidence -
- Infographic with snapshot of Canadian investor confidence available at:
TORONTO, June 17, 2013 /CNW/ - Despite reports of a cooling Canadian
housing market and a slow-growth U.S. economy, a TD study reveals that
Canadian investors have great expectations for the next 12 months.
According to the first TD Investor Insights Index, which will serve as
a benchmark for future reports on investor sentiment, Canadian
investors are optimistic about both their personal investment portfolio
and the Canadian economy. The study served as a barometer for general
investor outlook and looked at external factors influencing Canadians'
investment decisions and their confidence in domestic and foreign
The majority of investors polled expect the Canadian economy will
improve or at least stay the same over the next 12 months (26% and 55%
respectively). Many investors also expect a great or fair bit of
improvement for their investments in the next 12 months (41%) and half
think their investments will stay about the same (51%). The study
suggests that past market performance could be colouring this bright
"Canadian investors have a positive view of current market conditions -
both domestically and across North America," said Bob Gorman, Chief
Portfolio Strategist, TD Wealth. "While we anticipate moderate growth
within the Canadian economy despite little change in key Canadian
commodity prices, recent U.S. stock market performance is likely a
factor in shaping that positive view."
Outlook, Impact and Expectations:
The TD Investor Insights Index found that recent portfolio performance
has a big influence on expectations. Canadian investors who saw
improvements in their personal portfolio over the past 12 months are
more likely to expect continued growth over the next year.
Canadian investors who saw improvement versus those who experienced
65% expect improvement versus 24% who experienced a loss
30% expect their investments to stay the same versus 53% who experienced
3% expect a decrease versus 19% who experienced a loss
Still, the general sense of optimism is apparent even among those who
experienced losses. Despite this year's performance, investors who
experienced a loss are still more likely to anticipate improvement than
"For investors who are feeling optimistic and want to get off the
sidelines, there are many options available to fit within your goals
and strategies," said Kim Parlee, Vice President, TD Wealth Management.
"Keep in mind that understanding the different investment vehicles,
from guaranteed income products, to riskier options that may yield
greater returns, is an essential part of building a balanced portfolio
suited to your situation and risk tolerance."
The positive outlook isn't limited to personal investments. Canadian
investors expect to see improvement or consistency in the domestic
economy, as well as in the United States.
One-quarter of Canadian investors expect to see economic improvement in
North America (Canadian economy: 26%, U.S. economy: 27%)
About half of Canadian investors expect the North American economy to
stay the same (Canadian economy: 55%, U.S. economy: 41%)
Less rosy, however, is the outlook for the global market.
Only 10% of Canadian investors expect improvement for the world economy
(42% expect it to worsen, 43% expect it to stay about the same)
"While there is no escaping some degree of market volatility, investors
can still find value and good returns with a balanced portfolio. We
expect Canadian stocks and U.S. large caps to continue delivering
positive returns over the balance of 2013, while companies with steady
increases in sales, earnings and dividends outperform the more volatile
resource sectors," added Gorman.
About the TD Investor Insights Index
Head Research was commissioned to conduct a national survey of N=1,002
respondents among adult Canadian investors who purchased or sold
investments in the past 12 months and who currently own at least one
investment product. During fieldwork, quotas were managed to obtain a
sufficient number of investors of different ages, resulting in a slight
over-representation of younger investors. The data in this report have
been weighted to reduce the proportion of younger investors to their
natural level within adult Canadian investors. Respondents were sourced
from available non-probability based panels. Fieldwork was conducted
between April 8 and April 12, 2013.
About TD Wealth
TD Wealth represents the products and services offered by TD Waterhouse
Canada Inc. (Member - Canadian Investor Protection Fund), TD Waterhouse
Private Investment Counsel Inc., TD Wealth Private Banking (offered by
The Toronto-Dominion Bank) and TD Wealth Private Trust (offered by The
Canada Trust Company).
PDF available at: http://stream1.newswire.ca/media/2013/06/17/20130617_C8652_DOC_EN_28078.pdf
SOURCE: TD Waterhouse Group, Inc.
For further information:
Paradigm Public Relations
TD Bank Group