Briefly: “Canadians evenly split on markets” and more of Thursday’s news

There is no shortage of opinions on the direction financial markets will take, but a recent survey finds that sentiment among average Canadians is split almost perfectly into three camps.

An Angus Reid poll conducted for Franklin Templeton Investments found that 33% of Canadians are feeling opportunistic ahead of the RRSP contribution deadline. These respondents said they were willing to take on risk in their investment portfolios.

At the other end of the scale, 34% said they were suspicious or timid regarding risky assets at this time, while 32% were unsure how to define their current investment outlook.

“While Canadians are divided on this question, experience tells us the long-term winners are those who look at challenging markets as an opportunity,” said Don Reed, president and CEO of Franklin Templeton Investments. “History shows us that stocks will recover. Investors should ensure they ‘don’t lose twice’.”

Reed points out that most of the gains made in an upswing are realized early on, and that investors should therefore employ a dollar-cost averaging strategy to deploy their capital gradually.

The national survey of 1,001 Canadians discovered that those in the west were the most bullish, with 39% of Alberta, Saskatchewan and Manitoba residents describing themselves as opportunistic, analytical and willing to take chances.

Men were more willing to take on risk, with 40% saying they felt opportunistic, compared to 25% of women. The greatest risk aversion was found among those over age 55, with only 4% saying they would take on more risk.

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Mavrix offers new flow-through LP

Mavrix Fund Management has filed the preliminary prospectus of the Mavrix Explore 2009-I FT Limited Partnership. This offering will invest in a diversified portfolio of flow-through shares, largely issued by energy exploration firms.

The LP intends to focus on companies in the intermediate and junior resource sector with advanced exploration programs. The maximum offering size is $30 million.

The offering syndicate is led by Canaccord Capital, and includes CIBC World Markets, Dundee Securities, BMO Capital Markets, Scotia Capital, Raymond James, Blackmont Capital, Desjardins Securities, M Partners, Wellington West Capital Markets, Industrial Alliance Securities, Queensbury Securities and Research Capital.

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Investor confidence rises

According to State Street’s Global Markets’ Confidence Index — the index that calculates investors’ confidence and risk appetite based on the amount of their portfolios invested in equities — was recorded at 72.9 points this month, up from 60.2 in January.

The numbers have jumped for a second month in a row, but are still lower than the average levels seen in 2008.

The boost, according to State Street, was driven by the 13-point increase in confidence from North American investors. European and Asian investors weren’t as enthusiastic this month as they have been in the past, although both are only points off the global index. The European index was down 3.2 points, ending this month at 69.2 and the Asian index was down 2.7 points to 83.8.

(02/19/09)