In the context of economic uncertainty And the pressure that still exists inflationA new survey shows that whether it is now invest.
Investment broker Edward Jones Canada conducted an online survey of 1,003 Canadians aged 18 and over between May 14 and 17 and found that 43 per cent believed now is a good time to buy assets such as stocks and bonds and to open tax-free savings and RRSP accounts, while 40 per cent had a negative view of investing right now.
“So we’re seeing consistency among those who have a financial plan. They want to stick to their plan, so they continue to invest to reach their goals,” Julie Petrella, senior strategist for client demand at Edward Jones, told Global News. “Those who are undecided, they have uncertainty. They may be deliberately choosing to be undecided and saying I’d rather pay down my debt than invest… So we’re in a period of high inflation, high interest rates and political unrest, so people may just want to sit on the sidelines.”
However, while the gender ratio appears to be evenly balanced across the country, the disparity can be greater depending on where you live.
Canadians in Quebec were most likely to be positive about investing, with 51 per cent saying now is the right time, compared with 37 per cent who said the opposite.
But the story is different in Alberta, which has the lowest level of optimism at 29 per cent, with 45 per cent saying now is not a good time to invest.
As for other provinces, the numbers continue to change, with places like Ontario and British Columbia showing considerable confidence in investing, at 43% and 47% respectively.
Financial News and Insights
Delivered to your email inbox every Saturday.
Meanwhile, respondents in Atlantic Canada, Manitoba and Saskatchewan were more hesitant, with only 35 per cent of respondents having a positive attitude towards investing. On the other hand, about half of residents in Saskatchewan and Manitoba (49 per cent) had a negative attitude towards investing, compared with 39 per cent in Ontario and British Columbia and 46 per cent in Atlantic Canadians.
According to the company, data for these regions is not yet available.
The Edward Jones survey also found that 64% of Canadians cited long-term goals such as retirement and education as their main reason for investing, while 37% said travel and home improvements were their motivations. Another 38% said they wanted to maximize the tax benefits of investing in an RRSP or first-time home savings account.
When asked why people were against investing or had a negative attitude toward investing, the survey found that 54% pointed to economic uncertainty and 43% said they wanted to focus on paying down debt.
“Some people are comfortable with debt and are willing to take on debt and prefer to invest because they think it will get them further,” Petrella said. “And some people, even if they think mathematically it’s a better option, they don’t like debt. So there’s no return on investment that’s worth losing sleep at night.”
Most people haven’t ruled out investing entirely. If national economic conditions improved, 54 per cent of those with a negative outlook said they might enter the investment market, with Ontarians being the most likely at 62 per cent.
Petrella said Canadians should consider talking to a financial advisor, whether they are looking to invest now or considering investing once economic uncertainty improves.
They'll help you understand your personal goals, determine the impact inflation might have on your finances, see if there are tax-advantaged accounts like RRSPs that could help “allow you to make a more informed decision,” and determine whether investing or avoiding investing is best for your situation, she said.
© 2024 Global News, a division of Corus Entertainment Inc.
