Manulife’s ‘Investor Sentiment Index’ experienced the largest increase since 2011. It increased by six points overall to 22 in May from 16 last December. Canadians’ confidence in nearly all investment types increased, with the largest spikes in stocks and fixed income which both increased by 10 percentage points in the last six months. “Optimism is growing amongst Canadians when it comes to investing,” says Philip Petursson, chief investment strategist at Manulife Investments. “As oil prices have rebounded, so has the Canadian equity market and the Canadian dollar. Investor sentiment seems to be feeding off these improvements.” While overall sentiment around investing is up, there remains a cautious tone. Cash remains the most popular type of investment for the next 12 months at 24 per cent. Investors stated they like to have cash on hand when needed (19 per cent) and there is no investment risk which makes them feel secure (14 per cent). “Although investor sentiment seems to have improved with the Canadian equity market, the interest in cash may imply that investors are still wary about taking on more risk,” says Petursson.
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