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July 13, 2021

Outlook for stocks dim but gold may shine: survey

Canada's investment managers are getting antsy about stock market returns, according to the latest quarterly survey from BetaPro Management.

Rather than anticipating some relief after the most recent slide, those people entrusted to make decisions about your money are growing increasingly discouraged as to whether they can make any headway in the coming months.

The June survey polled nearly 200 advisors, who collectively oversee an estimated $20 billion in client assets, on their outlook for various asset classes.

Those claiming to be "bullish" about the S&P/TSX 60 fell to 39 per cent in this latest go-around, down from 58% three months ago. Those considering themselves to be "bearish" on the Canadian market rose to 45% from 30%.

Those bearish on U.S. large-cap stocks, represented by the S&P 500, rose to 52% from 31%. Negative sentiment toward the Nasdaq 100 was up to 45% from 27%.

Only time will tell which camp is right, but investors are clearly wary of any sign of softness in the macro economic outlook.

What’s left? Precious metals, I guess. Bullishness for gold jumped to 68% from 55%, and most respondents were also equally optimistic about gold-related stocks.

A recent survey of more than 75 gold market 'specialists' found that most see gold topping $1,500 an ounce in the not-too-distant future, with $2,000 not far behind.

Among the less shrill gold bulls is long-time MSN columnist Jon Markman, citing reports that argue that gold prices should remain near current levels for at least the next four years.

“With the U.S. Federal Reserve likely to keep rates on hold through 2012, and the potential for inflation-adjusted interest rates to move further into negative territory with another round of quantitative easing, there's little reason to think gold's run higher will end anytime soon,” he writes.

Got some money working for you? What's your outlook for the balance of the year?

By Gordon Powers, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...