Canadian investment advisors are positive on Canadian equities, U.S. equities and cannabis stocks, according to Toronto-based Horizons ETFs Management (Canada) Inc.’s Q1 2018 Advisor Sentiment Survey.
Horizons asked Canadian investment advisors whether their expectations of returns are bullish, bearish or neutral on 15 different asset classes for the first quarter of 2018, which ends March 31.
Advisors remained bullish on Canadian and U.S equities indices despite relatively flat performance in the fourth quarter (Q4) of 2017. In the Q1 survey, 65% of advisors said they were bullish on the S&P/TSX 60 index compared with 62% who were bullish on the Q4 2017 survey — even though the index had a return of only 4.11% in Q4.
For U.S. equities, advisors’ bullish sentiment for the S&P 500 composite index rose significantly heading into Q1, rising to 65% from 53% in Q4 2017. Likewise, the percentage of advisors bullish on the Nasdaq 100 index increased to 65% from 51% in Q4.
In addition, advisors are becoming significantly more bullish on Canada’s developing cannabis industry. Almost two-thirds of advisors (64%) expressed bullish sentiment for the North American marijuana index compared with 46% who were bullish on the space in Q4 2017.
“The Canadian cannabis industry experienced explosive growth last year,” says Steve Hawkins, president and co-CEO of Horizons, in a statement, “and advisors believe that will continue.”