Advisor confidence remains high in both commodities and energy stocks, as reported in the survey. Advisors who are …
bullish on energy stocks represent over 73% of the almost 400 advisors polled, managing more than $30 billion in assets and representing a significant cross-section of the industry.
The survey revealed increased optimism for crude oil, but slightly lowers expectations for natural gas. Confidence in energy and mining commodity prices is consistent with a 70% bullish sentiment in the Canadian dollar versus the U.S. dollar. The expectation of a return to economic stability also resulted in a bearish outlook for the U.S. 30-Year Bond.
“Advisors’ positive outlook on energy stocks, crude oil, mining equities and gold bullion is consistent with recent market activity in the commodities markets and signals continued confidence in Canadian equities and the country’s general economic stability vis-à-vis the United States,” stated Howard Atkinson, President of BetaPro. “Furthermore, despite a drop in the U.S. 30 Year Bond of more than 5% in the previous quarter, advisors remain bearish. This is consistent with current U.S. monetary and fiscal policy and is an indication that advisors believe an economic recovery will eventually occur and interest rates will rise.”
Source: BetaPro Management Inc. (“BetaPro”)
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