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Advisors Expect Stock Rise To Continue

Canadian investment advisors expect stocks to continue to rise even as they turn increasingly bearish on precious metals and the Canadian dollar, says the third quarter of 2013 ‘Advisor Sentiment Survey’ by Horizons ETFs Management (Canada) Inc. The survey shows that collectively, advisors were bullish on only five of the 16 asset classes this quarter. Bullish sentiment on the S&P/TSX 60 increased from 47 per cent last quarter to 53 per cent, despite a 4.9 per cent decline in the index last quarter. Bullish sentiment on the S&P 500 remained steady at 55 per cent after the large cap U.S. stock index returned 2.36 per cent in the second quarter. "Canadian stocks have lagged U.S. stock returns considerably for a number of quarters now, and advisors may be expecting the Canadian market to make up some of that difference given its strong historical correlation to U.S. stocks," says Howard Atkinson, president of Horizons ETFs. "However, the Canadian market has such a heavy weighting in resource stocks, which have been out of favour, it's possible that Canadian stocks will continue to diverge from the fortunes of the U.S. market." Bearish sentiment on gold bullion rose from 34 per cent to 49 per cent, with 18 per cent of advisors surveyed neutral in the third quarter. Bearish sentiment on silver bullion, however, jumped from 28 per cent to 42 per cent. Atkinson says "in many ways this might be a contrarian signal, suggesting that sentiment on gold has hit a low."

Courtesy of Benefits and Pensions Monitor website News Alerts

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