In a recent survey by Manulife Financial and its U.S. subsidiary John Hancock Financial, Canadians are twice as likely as Americans to view the present as a good time for investments.
The survey which measures the Investor Sentiment index or ISI have showed positive readings on both sides of the border, with 5-point increases at the end of last year. The Canadian ISI is currently at +26 while the U.S. reading is at +15.According to Bill Cheney, the chief economist for the companies, “Growing consumer confidence is an important barometer when looking at the future health of the economy on either side of the border. Consumer confidence usually translates into increased spending, a critical component to keep their economies moving forward.”
In Canada and the U.S., most people are optimistic – 55% of Canadians and 53% of Americans feel that they will be financially better off in two years time, 37% of Canadians and 38% of Americans expect to be in the same position and 8% of Canadians and 9% of Americans expect to be in a worse position.
Declining investment values, ability to save for retirement and managing personal debt are the top financial concerns according to the survey.
It is also interesting to note that majority of the Canadians surveyed made use of financial advice, with 68% of Canadians saying they hired an advisor while 53% of Americans did the same.
The survey also presented evidence that more Canadians prefer investing in their homes than Americans. According to the article, “No surprise there as the Canadian housing market has yet to suffer the same decline as the American market. Americans, for their part, had a stronger preference for balanced mutual funds than Canadians and were less willing to hold cash.”
Reference: "Canadians more optimistic than Americans" by Steven Lamb, January 25, 2012. Advisor.ca