BMO Financial Group

BMO Financial Group
BMO Nesbitt Burns

BMO Nesbitt Burns

October 26, 2010 06:00 ET

BMO Nesbitt Burns: Canadians Bullish on Stocks... But Are They Willing to Run With the Bulls?

- Two Years After Market Downturn, Two-Thirds Optimistic About Stock Market

- However, Vast Majority Still Shying Away From Investing in Stocks

- Now May be the Perfect Time to Take Advantage of Rising Equities

TORONTO, ONTARIO--(Marketwire - Oct. 26, 2010) - BMO Nesbitt Burns today announced the results of a survey that revealed 62 per cent of Canadians are currently optimistic about the future of the stock market. However, despite the positive sentiment, only 13 per cent say they are more likely to invest in equities.

The survey, conducted by Leger Marketing on behalf of BMO Nesbitt Burns, examined investors' attitudes towards the stock market. Only one-third (37 per cent) of Canadians stated that they actually made changes to their investment portfolio since the onset of the recession in September 2008. Of those who did, 54 per cent were motivated by an investment professional to do so.

"With Canadians having experienced two bear markets in the last decade, it's not surprising that investors may be a bit wary of the stock market," says Michael Herring, Managing Director and Investment Strategist, BMO Nesbitt Burns. "This is a great time to take advantage of the opportunities that equities are providing. For investors looking to enter the markets, the best thing to do is seek out the advice of an investment advisor who can work with you to identify your investment goals and help you develop a financial plan that effectively balances risk."

Other Key Findings:

  • Men are more likely than women to invest in equities (25 per cent vs. 13 per cent) and are more likely to make changes to their investment accounts (41 per cent vs. 34 per cent)
  • Men are also more optimistic about the future of the stock market relative to women (69 per cent vs. 55 per cent)
  • Three in ten Canadians (29 per cent) do not hold any investments

"The survey results clearly demonstrate that investors' portfolios did not change significantly over the course of the recession," says Herring. "As a result, many investors may not have taken advantage of beneficial investment opportunities. Over long periods of time, stocks have outperformed other asset classes, and with equity markets at fair value on our gauges, we would expect continued gains in the current bull market. Now may be the perfect time for investors of all levels to re-examine their portfolios." 

The survey was completed with 1,502 Canadian adults and was conducted using Leger Marketing's Web panel between September 20 to 23, 2010. 

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