Many feel helpless and skeptical but believe markets will improve
TORONTO, Jan. 27 /CNW/ - Canadian investors are stuck in the snow bank
this winter, feeling frozen, helpless and uncertain - even when they
expect that the stock market will continue to rise.
In its latest national research, Franklin Templeton Investments Corp.
found 39 per cent of investors described their investment personality
as either suspicious or timid. Only 31 per cent of investors described
themselves as analytical, risk-taking or opportunistic. The survey of
1,020 Canadians was conducted the week of January 17 by Angus Reid
It's the fifth consecutive national survey by Franklin Templeton since
2009 to find strong negative sentiment among Canadian investors. The
pessimistic pattern is in stark contrast to market returns over the
same period. In 2009 and 2010, the Toronto Stock Exchange soared more
than 49 per cent in value and is now only 11 per cent below its record
"The markets have recovered dramatically, but investor confidence has
not," said Don Reed, president and CEO of Franklin Templeton. "We've
spent two years studying investor's attitudes towards the market and
it's clear that emotions dictate action.
Many Canadians failed to seize the opportunity an d invest in stocks at
bargain prices. Even today, with forecasts of continued growth, many
investors are still frozen."
Canadians are bullish… but suspicious
Paradoxically, Canadians are bullish about the investment market's
growth prospects, the survey found. When asked where we are at in the
market cycle, the bulls outnumber the bears by more than three to one.
A third of Canadians (34 per cent) don't know what to think of the
market's future. Of those who have an opinion, 55 per cent expect stock
markets will rise while only 16 per cent believe markets will fall.
Emerging international markets such as China, Brazil and India were
identified by 43 per cent of respondents as representing the greatest
investment opportunity in the next decade.
"While Canada's markets have recovered smartly, global markets have a
long way to go - and that's why there's so much opportunity," Mr. Reed
said. "Equities are on sale. A strong Canadian dollar means it's a
great time for investors to increase their exposure to global stocks
because they can buy foreign assets at a discount."
Who's optimistic? Men, newer Canadians & people with RSPs
In other results, the survey found:
Canadians with RSPs are more bullish in their outlook (45 per cent see
markets rising compared to 27 per cent without RSPs);
Foreign-born Canadian investors are more optimistic in their outlook
(five per cent) and are almost twice as likely to describe themselves
as risk-takers (13 per cent versus seven per cent) as native-born
Men are significantly more bullish about the future performance of the
market than women. Forty-five per cent of men expect stock markets to
rise compared to 28 per cent of women.
About the survey:
On January 19 and 20, 2011, Angus Reid Strategies conducted an online
survey among a randomly selected, representative sample of 1,020 adult
Canadians. The margin of error for the total sample is +/- 3.1%, 19
times out of 20. The results have been statistically weighted according
to Statistics Canada's most current education, age, gender and region
census data to ensure a representative sample of the entire adult
population of Canada. Discrepancies in or between totals are due to
About Franklin Templeton Investments
Franklin Templeton Investments Corp. is a wholly owned subsidiary of
Franklin Resources, Inc. (NYSE: BEN), a global investment organization
operating as Franklin Templeton Investments. Franklin Templeton
Investments provides global and domestic investment management
solutions managed by its Franklin, Templeton, Bissett, Mutual Series,
Fiduciary Trust and Darby investment teams. The San Mateo, CA-based
company has more than 60 years of investment experience and more than
US$670 billion (approximately C$668 billion) in assets under management
as of December 31, 2010.
Franklin Templeton Investments Corp. has more than 600 employees
providing services to more than one million unitholder accounts and
more than 200 pension funds, foundations and other institutional
investors. Additional information on Franklin Templeton Investments
Corp. can be found at www.franklintempleton.ca.
SOURCE Franklin Templeton Investments Corp.
For further information:
Sarah Kingdon, Consultant, Public Relations, Franklin Templeton Investments, 416.957.6191
Debra Chan, Senior Consultant, Argyle Communications, 416.968.7311 X229
Keith Damsell, Director, Corporate Communications, Franklin Templeton Investments, 416.957.6099