BMO Financial Group

BMO Financial Group
BMO Bank of Montreal

BMO Bank of Montreal

June 05, 2012 11:30 ET

Canadian Investors See an Upside to Global Market Volatility: BMO Study

- Almost half of investors see opportunities in times of market volatility

- Vast majority have changed their investing habits because of market uncertainly

- Seventy-two per cent believe that market volatility is the "new normal"

- The study's results were announced today at a presentation hosted by BMO's Wealth Management Group, including BMO Global Asset Management, BMO Nesbitt Burns and BMO Harris Private Banking

TORONTO, ONTARIO--(Marketwire - June 5, 2012) - BMO Financial Group today announced the results of a study that revealed that almost half (47 per cent) of Canadian investors view the volatility that has dominated global markets over the last year as a good opportunity to invest; only 28 per cent view the current investing climate in a negative light. Meanwhile, 84 per cent said they have changed their investing habits to adapt to the new environment.

The study's results were announced today during an "Art of Investing in Volatile Times" luncheon hosted by BMO's Wealth Management Group at the Art Gallery of Ontario as part of BMO Financial Group's sponsorship of "Picasso: Masterpieces from the Musée National Picasso, Paris."

The study, conducted by Pollara, also revealed that three-quarters of Canadian investors (72 per cent) believe that market volatility is here to stay and consider this investment environment to be the "new normal."

Rajiv Silgardo, Co-CEO, BMO Global Asset Management, noted that Canadians are right to assume that market volatility will not dissipate anytime soon: "Several factors lead us to conclude that volatility will continue to characterize the financial markets for the foreseeable future. These include ongoing pressures in the Eurozone, higher inflation rates in China, tensions in the Middle East and a tentative U.S. economic recovery."

According to Paul Taylor, CIO, BMO Harris Private Banking and BMO Global Asset Management: "The current market conditions should prompt investors to take a look at specific sectors for their strong yield and defensive total return characteristics. These include consumer staples, telecom, utilities and health care."

Other Key Findings from the Study:

  • More than half (56 per cent) believe economic troubles in Europe, the Middle East and other parts of the world have had a negative impact on their investments.
  • Sixty-seven per cent feel their portfolios are diversified, but just 15 per cent describe them as very diversified.
  • More men than women (35 per cent versus 26 per cent) have diversified their investments as a way of adapting to the current period of market volatility and economic uncertainty.

"During times of market volatility, it's critical that investors maintain a well-diversified portfolio, which balances risk and return," stated Stephane Rochon, Vice-President and Managing Director, BMO Nesbitt Burns. "Review your investments periodically to ensure they are aligning to your financial goals, but avoid trying to time the market - a strategy which rarely works."

The online survey was conducted by Pollara with a random sample of 1,156 Canadian adults, between May 17 and May 22, 2012.

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