Economy will flatline for rest of 2013: advisor poll

Canadian advisors are pessimistic about the economy.

Forty-four percent are predicting zero growth in Canadian GDP during the second half of this year, according to the Summer 2013 Sun Life Advisor Sentiment Index released today.

What’s more, 9% expect contraction in 2013.

Read: Canada’s economic growth curbed: RBC

The survey, conducted by Ipsos Reid from April 5 to May 22, 2013, measures financial advisors’ opinions on capital markets and key economic factors.

As for the rest of the world, more advisors are feeling positive about those capital markets, with bulls outnumbering bears by more than two to one. Fifty-four per cent of advisors polled feel bullish about the markets generally, with their optimism focused on U.S. equities. More than 60% of advisors say they are either very bearish or somewhat bearish on Canadian and U.S. government bonds.

Read: Handling bonds in a low-rate environment

“The U.S. equities market has seen record highs in the first half of 2013,” says Sadiq S. Adatia, Chief Investment Officer at Sun Life Global Investments. “This market has consistently performed well and this trend is predicted to continue.”

Read: Housing correction to slow economic growth

Other findings:

• 22% of advisors are at least somewhat bearish on the S&P/TSX Composite Index
• Nearly 40% expect the index to be flat by the end of the year

Adatia adds, “Though no growth is expected over the next six months, we believe the [Canadian] economy will remain stable during this period.”

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.