For the first time since December 2005, investment managers are more bullish than bearish on the broad Canadian market.
That, from the Russell Investment Manager Outlook, which also showed that the outlook for EAFE(Europe, Australasia and Far East)equities grew from 36% last quarter to 62% this quarter.
“After the fear and tension that pervaded the earlier quarters in 2006, investment managers may now be transitioning to cautious optimism,” said Tim Hicks, chief investment officer with Russell Investments.
As far as the Canadian market goes, the report shoed bullish sentiment rose from 28% last quarter to 36% this quarter. Manager sentiment for U.S. equities only rose one per cent to 51%.
The sector for which managers had the greatest amount of enthusiasm was the financial sector. For the second quarter in a row 68% of surveyed Canadian managers were bullish on the sector.
Manager bullishness for the financial services is consistent with the more general optimism around large cap growth stocks and a sense that rates may have peaked,” said Hicks.
The survey was conducted between November 27 and December 4, 2006. Fifty-four managers responded.
For more on the report click here.
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