Investing in 2013 - MoneySense

Investing in 2013

Canadians appear bullish when it comes to their personal investments despite the ongoing real estate slowdown.

  • The national housing market is in for even softer landing than anticipated, the Canadian Real Estate Association said Monday. The average price for all types of property in major markets across Canada in May was $388,91—up 3.7% from a year earlier. Transactions meanwhile were down 2.6%. Looking ahead, CREA is now estimating 443,400 units will be sold in 2013, a decline of 2.5% from 454,573 in 2012, not the 2.9% fall it previously projected.
  • Despite the slowdown on the real estate front, Canadian investors are optimistic about the year ahead, according to the first TD Investor Insights Index. More than half of those polled believe the economy will improve over the next 12 months, while 26% expect it to remain flat. As far as personal portfolios are concerned,  92% expect them to stay the same or improve. “Canadian investors have a positive view of current market conditions—both domestically and across North America,” said Bob Gorman, chief portfolio strategist at TD Wealth. “While we anticipate moderate growth within the Canadian economy despite little change in key Canadian commodity prices, recent U.S. stock market performance is likely a factor in shaping that positive view.” Investors who saw improvements in their portfolios over the past 12 months were more likely to expect continued growth over the next year but even those who saw declines were generally optimistic. “For investors who are feeling optimistic and want to get off the sidelines, there are many options available to fit within your goals and strategies,” said Kim Parlee, vice president at TD Wealth Management. “Keep in mind that understanding the different investment vehicles, from guaranteed income products, to riskier options that may yield greater returns, is an essential part of building a balanced portfolio suited to your situation and risk tolerance.”
    Click on the infographic below for full study findings: