Sun Life survey finds advisors forecast economic flatline for rest of 2013
TORONTO, June 26, 2013 /CNW/ - Canadian financial advisors are predicting zero growth in the Canadian economy during the second half of this year. That's according to the Summer 2013 edition of the Sun Life Advisor Sentiment Index released today by Sun Life Global Investments. The survey, conducted by Ipsos Reid from April 5 to May 22, 2013, measures financial advisors' opinions on capital markets and key economic factors.
Advisors are feeling positive about capital markets around the world, with bulls outnumbering bears by more than two to one. Fifty-four per cent of advisors polled feel bullish about the markets generally, with their optimism focused on U.S. equities. Over 60 per cent of advisors say they are either very bearish or somewhat bearish on Canadian and U.S. government bonds.
"The U.S. equities market has seen record highs in the first half of 2013," said Sadiq S. Adatia, Chief Investment Officer, Sun Life Global Investments. "This market has consistently performed well and this trend is predicted to continue."While the U.S. markets are seeing upward movement, advisors are overall bearish on Canada.
- Forty-four per cent of advisors see zero economic growth in Canada for the second half of 2013.
- Another nine per cent are forecasting that the Canadian economy will contract.
- Twenty-two per cent of advisors are at least somewhat bearish on the S&P/TSX Composite Index.
- Nearly 40 per cent expect the index to be flat by the end of the year.