The majority of Canadian investment managers are bullish on the equity market, according to a quarterly poll.
The latest Russell Investment Manager Outlook finds that 68% of managers believe the Canadian equity market is fairly valued, which is 19% higher than a year ago.
“Meanwhile, sentiment for the bond market turned sharply negative in the second quarter and the number of bullish bond managers fell 24% to just 6%,” says Tim Hicks, chief investment manager, Russell Investments. “With yield rising on government-issued bonds, high-yield bonds may continue to struggle.”
These changes are likely due in part to the continued strength of the Canadian economy, the persistence of inflationary signals and strong hints from the Bank of Canada that further rate hikes are in the offing, he adds.
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