Things keep looking up for Canadians, at least in terms of their investments, according to the latest release of the Manulife Investor Sentiment Index.
Across the board, for a broad range of investments, including stocks, fixed income, investment properties and balanced funds, Canadians have widely expressed optimism in Q1.
The Index turned in a measurement of +28 in March, which is a rise from +20 in December, the highest level it has reached since March 2010, when it was +33.
A turn in the tide perhaps? "Confidence in investing in your own home has remained consistently high over the last few years, even as real estate prices continue to climb," said Paul Rooney, President and CEO, Manulife Canada. "But what we're seeing now is a more widespread optimism, as balanced funds, which provide a mix of investments, jump into second place."
The challenge can be, when all investment types are appealing, to determine which ones best suit an individual’s needs. Rooney says, "We always encourage people to work closely with an advisor and stick to a financial plan."
Looking at the Index overall, the rise can be attributed to all investment types- including real estate- but was driven up largely due to a surge in optimism about balanced funds, mutual funds, TSFAs, and stocks.
Of all the investment categories, “Principal residences still remain the most popular investment category at +61, far ahead of the next highest category of balanced funds at +32. “
Investment in the homes in which they live still remains the most popular spot for Canadians to put their money- whether through aggressively paying down their mortgage or through home renovations. This finding has remained consistent through 1999. The index states that 69 % of those surveyed said it's a good or very good time to invest in their own residence - minus 8% who believe it's a bad or very bad time. The remainder said it was neither a good nor bad time.
Property investors showed hope for the future as well, according to the Index, regaining some ground lost last year. Investment real estate rose three points in March, solidifying its’ lead over cash and fixed income investments. Investment real estate was at +25, which is still lower than the +40 registered a year ago.