Canadian investment managers are feeling bullish about the market, according to the latest quarterly Russell Investment Manager Outlook survey.
60% of managers surveyed are bullish on Canadian stocks, while 70% believe stocks are undervalued. Meanwhile only one-in-ten polled believe the S&P/TSX composite index is too expensive.
Managers are particularly enthused about prospects for energy, materials and financials stocks, which have been hit hard during the downturn. 76% of those surveyed are bullish on energy stocks, 58% are bullish on materials and 61% like financials.
“Except for emerging markets, Canadian equities were the worst-performing asset class in the final quarter of 2008," says Sadiq S. Adatia, chief investment officer of Russell Investments Canada Limited.
"This decline was led by sharp pullbacks in energy, materials, and financials. Given the bargain-basement valuations that resulted, it’s fitting that a solid 60% say they are now bullish on Canadian equities.”