Canadian investment advisors demonstrated uncertainty in regards to most asset classes surveyed for the Q3 Advisor Sentiment Survey conducted by Horizons ETFs Management (Canada). The survey found advisors seem neither bullish nor bearish.
The survey asked advisors whether they were bullish, bearish, or neutral about their expectations for returns on 15 asset classes for the third quarter of 2017. On the S&P/TSX 60 Index, 40 per cent of respondents said they are bullish on the Canadian blue-chip equity index, while 33 per cent said they are neutral and 27 per cent said they are bearish.
Canadian financial stocks
However, advisor sentiment toward Canadian financial stocks has seen a strong increase. Fifty-four per cent of advisors offered a bullish outlook on financial stocks for the third quarter versus 37 per cent last quarter. As for energy equities, 40 per cent of advisors said they were bullish for Q3, down from 47 per cent last quarter.
Huge divergence in sentiment
"The huge divergence in sentiment on Canada's two key stock sectors, energy and financials, may explain the overall sentiment on the Canadian equity market," said Steve Hawkins, president and co-CEO of Horizons ETFs. "Canadian financials continue to perform quite well as part of a rebound in most banking-focused stocks related in part to the rapidly improving global economy. The Canadian market, and to a lesser extent, the financial stocks in Canada, can be dependent on energy prices, which continue to struggle."