Investor sentiment in Canada is at its most positive since the stock market collapse of 2008, a new Franklin Templeton survey has found.

In its latest national research, Toronto-based Franklin Templeton Investments Corp. found 40% of investors describe themselves as opportunistic, risk-taking or analytical, the three categories that typically suggest buying behaviour. The number of investors describing themselves as “opportunistic” has risen by 75% since July 2011. These are the most bullish results since the investment management company began tracking investor sentiment after the global financial crisis three years ago.

“It’s the biggest change in investor sentiment in three years,” says Don Reed, president and CEO of Franklin Templeton.

Notwithstanding the rise in positive sentiment, investors remain divided in their outlook, with 42% in the two most risk-averse categories, describing themselves as “suspicious” (27%) or “timid” (15%). The number of investors saying they were “not sure” has dropped from 30% in June 2011 to 17% today, suggesting that sentiment is hardening.

The poll suggests a deep division among investors when it comes to tactics, too. When asked what action, if any, they would be taking in light of today’s markets, 30% of investors said they “have a good strategy” and are “sticking with it”. In contrast, 30% of investors said they were “not making new investments”.

“Franklin Templeton’s research suggests there will be a tug of war between the bulls and the bears in 2012,” Reed says. “It’s a perfect time for investors to get off the sidelines and re-enter the equity markets.”

There’s a large and widening gap between men and women when it comes to investor sentiment, the poll reveals. Fifty per cent of male investors surveyed describe themselves as opportunistic, risk-taking and analytical, up from 37% in June last year. In contrast, 32% of female investors identify with these optimistic attributes, up from 24% in 2011.

According to the poll, Canadian investors surveyed are relying on two retirement income sources above all others: government plans such as the Canada Pension Plan and Old Age Security (74% of respondents) and Registered Retirement Savings Plans (72%). Nationally, 41% of respondents said they would rely on their home or property as a retirement income source; in British Columbia, the figure spiked to 54% while in Quebec, fell to 34%.

Running out of money is the biggest financial concern of Canadian investors regarding retirement (49%). Only 10% of Canadian investors cited the ups and downs of the stock market as their biggest concern.

“In their retirement planning, Canadians are relying on three acronyms: CPP, OAS and RRSPs,” Reed says. “Given the Prime Minister’s recent musings about raising the age of eligibility for public pension benefits, the need for smart RSP planning is greater than ever.”

The survey of 1,032 Canadian investors was conducted February 1, 2 and 3 using the Angus Reid Forum. The margin of error which measures sampling variability — is +/- 3.05%, or 19 times out of 20.