Canadian Energy, represented by the S & P / TSX Capped Energy Index, was the best-performing stock index in the second quarter of 2021, according to Q3 polls, with a return of 19.99%. In response, both advisors and investors rated Canadian Energy as their most optimistic asset class. Advisors added 5 percentage points to increase their overall upside sentiment to 64% overall, while investors added 11 percentage points of positive sentiment for an overall upside of 62%. Canadian Financials, represented by the S & P / TSX Capped Financials Index, also performed strongly in the second quarter of 2021, returning 7.38% for the period. While both groups surveyed remained optimistic overall, they dampened their positive sentiment, with advisors cutting their bullish stance 10 percentage points to 63% and investors cutting back 6 percentage points to keep financials at 53% overall.
“Now that global travel opportunities and the transportation of goods around the world increase, the demand for energy is increasing, which has resulted in a strong performance for Canada’s energy sector,” said Noble. “In addition to the strong tailwind of rising energy prices, Canada has also faced some of the longest and most stringent restrictions in the developed world. With the country now reopening with a high vaccination rate compared to the rest of the world, foreign investors seem increasingly to favor Canada over other developed markets, as evidenced by the relative outperformance of Canadian stocks last quarter. “
US and international stocks
U.S. stocks maintained positive momentum throughout the second quarter of 2020, with the S&P 500 index gaining + 8.17% while the NASDAQ 100 index rising + 11.18%. While investors are still overwhelmingly bullish on both indices, investors responded to the robust performance by cutting their outlook for the S&P 500 by 5 percentage points to a total of 56% uptrend, but also cutting their bullish portion of the NASDAQ-100 by 5 percentage points increased to 53%. bullish overall. The advisors also slipped on their S&P 500 outlook, taking 9 percentage points back from positive sentiment to stay at a 56% uptrend overall.
The asset class with the best performance in the second quarter of 2020 was natural gas futures with a return of + 39.95% for the quarter. Despite the typically lower seasonal demand during the summer, both advisors and investors increased their bullish view of the commodity, with advisors switching from neutral to bullish after increasing their positive sentiment by 9 percentage points to a total of 46% bullish. Investors were even more enthusiastic and increased their bull market by 12 percentage points to a total of 51%.
Crude oil futures posted the second-best return of any measured asset class in the Q3 surveys with a return of 24.19% in Q2 2020, buoyed by the ongoing economic recovery. Advisors added 5 points of positive sentiment and were 57% bullish overall , and investors add 8 percentage points for a total of 61% bullishness.