How Canadians plan to invest this summer

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Horizons ETFs Management Canada says investors are “extremely bullish” heading into the third quarter (Photo by Lu Yang / Xinhua via Getty) (Xinhua / Lu Yang via Getty Images)

Canadians plan to ditch crypto in favor of crude as bitcoin price drops and rebound in travel brings energy sector to life, says largest provider of exchange-traded funds (ETFs) from the country.

Investors and advisers polled by Horizons ETFs Management Canada chose Canadian energy as their most bullish asset class in the company’s third quarter outlook survey released on Friday. The two aligned with their vision for bitcoin (BTC-CAD), ranking the world’s most popular cryptocurrency the most bearish among 16 investment categories.

“As we approach the third quarter of 2021, Canadian investors and advisers are extremely bullish in most equity indices and asset classes,” Horizons said in a statement. The Toronto-based financial services firm manages over $ 19 billion in assets and operates 95 ETFs on Canadian exchanges.

Horizons announces its third quarter 2021 Advisor and investor sentiment surveys is based on responses from 342 investors and 166 participant advisers surveyed between June 18 and June 30. Their forward-looking opinions cover the period from June 30 to September 30. cannabis and the booming psychedelic industry.

Canadian energy stocks climb

Canadian energy stocks have benefited from a recent rise in oil prices and expectations of increased fuel consumption this summer. The S & P / TSX Capped Energy Index has climbed more than 42% since the start of the year. Horizons says advisers added five percentage points to their positive view of Canadian energy in the latest poll, bringing their total optimism score to 64 percent. Investors added 11 percentage points, for a total increase of 62 percent.

A year-to-date view of the iShares S & P / TSX Capped Energy Index ETF (XEG.TO).

A year-to-date view of the iShares S & P / TSX Capped Energy Index ETF (XEG.TO).

“In addition to favorable winds with rising energy prices, Canada has also faced some of the longest and most stringent restrictions in the developed world,” said Mark Noble, executive vice president of strategy of ETFs at Horizons ETFs in the press release. “As the opportunities for global travel and global freight transportation increase, demand for energy is on the rise, which has resulted in a strong performance for the Canadian energy sector.

The fall of Bitcoin brings out the bears

Bitcoin rose from around US $ 11,000 last October to over US $ 60,000 in April, and is now trading in the US $ 30,000 range. The mad rush was prompted by a chaotic mix of factors, ranging from the Twitter account of Tesla boss (TSLA) Elon Musk to regulatory crackdowns in parts of China.

A year-to-date view of Bitcoin against the US dollar.

A view from the start of the year on Bitcoin in US dollars.

“After Bitcoin’s price fell 41.34% in Q2 2021, the worst performance of any asset class measured by Q3 surveys, investors went from bullish to bearish, adding 15 points percentage to their negative sentiment, for a total of 50% bearish overall, ”Horizons said.

Investment advisers raised their already pessimistic view of bitcoin for the third quarter of 2021, adding nine percentage points, for a bearish score of 54%.

What about pot and psychedelics?

Canadian and US large-cap stocks posted strong performances in the second quarter of 2021. While investors and advisers remain in the bullish camp for the third quarter, they have cautiously lowered their expectations for the S & P / TSX 60 and the S&P 500, while enhancing their perspective on the Nasdaq 100.

Horizons says the outlook for emerging markets was one of the biggest sinkholes in its third-quarter survey. It was the third most bullish sector for advisers at 61 percent, down four percentage points from last quarter. Investors who were also bullish on international stocks reduced their positive opinion by nine percentage points to 49 percent overall.

Expectations for the Canadian cannabis industry have fallen among investors and advisers. However, opinions on the burgeoning psychedelics space were mixed, with investors 46% bullish and advisers evenly split between neutral and bearish sentiment, 34% each, heading into the third quarter of 2021. .

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on twitter @jefflagerquist.

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