New data reveals significant regional disparities in Canadians' investment outlooks amid economic uncertainty
Canadians remain divided on their outlook of the current economic climate and whether now is a good time to invest.
New data from Edward Jones Canada shows that while 43 percent believe now is the right time to invest, 40 percent have a negative outlook, and 17 percent are unsure.
The research highlights a significant disparity between Canadians in different regions regarding their investment views. A majority of Quebeckers (51 percent) have a positive outlook, whereas only 29 percent in Alberta share this sentiment.
In Saskatchewan and Manitoba, 49 percent feel now is not the right time to invest.
“High inflation and interest rates have made the past years financially challenging for many Canadians," says Julie Petrera, senior strategist, Client Needs at Edward Jones.
“Some are taking a wait-and-see approach while others are seeking investment opportunities in this economy. One contributing factor seems to be whether or not the individuals have goals, plans or work with an advisor. Unsurprisingly, those partnering with advisors are more optimistic about investing and their financial future.”
The research underscores the value of working with a financial advisor. Among those who work with a financial advisor, 55 percent have a positive investment outlook, compared to 38 percent who do not.
Even among those with a negative outlook, 41 percent of those working with a financial advisor feel optimistic about their financial situation, compared to 25 percent who do not.
Canadians who believe now is the right time to invest share a common motivator: reaching financial goals. 64 percent are motivated by saving for long-term goals such as retirement, education, or home ownership.
Additionally, 37 percent focus on short-term goals like travel, major purchases, or home repairs, and 38 percent are driven by maximizing tax advantages from RRSPs and FHSA.
The research also reveals differences in investment outlooks between men and women. While 51 percent of men feel now is the right time to invest, only 35 percent of women agree.
Women with a positive outlook are more motivated by financial goals, with 71 percent saving for long-term goals (compared to 59 percent of men) and 47 percent saving for short-term goals (compared to 31 percent of men).
Economic uncertainty (54 percent) and paying down debt (43 percent) are the top reasons Canadians are not investing right now. However, with inflation stabilizing and interest rates expected to decrease, this is a crucial moment for Canadians considering their next financial steps.
Among those with a negative investment outlook, 54 percent are likely to invest if conditions improve, with Ontarians being the most likely at 62 percent.
