Canadians’ lack of financial education may be costing them money, with the majority of investors missing out on the best year in the stock market in 30 years, a new survey found.
A new survey by Franklin Templeton Investments Corp. shows 87% of investors in this country didn’t buy into the TSX in 2009, a year that saw the benchmark S&P/TSX index climb upwards of 30% in its best annual return since 1979.
The vast majority of Canadians, 86% to be exact, said they just didn’t know how well the TSX performed.
Those who were paying attention however, were far more likely to take action. The online poll conducted by Angus Reid for Templeton found 37% of respondents who identified themselves as buyers in 2009, correctly identified the market’s recovery.
"Franklin Templeton's research shows that informed investors were best positioned to take advantage of the markets last year," said James Cook, executive vice president of Franklin Templeton Investments Corp.
"Only 14% of investors knew the TSX rose more than 20% in 2009 - and perhaps that's why so few benefited from last year's market surge. It's important for Canadians to get advice - and get invested."
But there’s no indication Canadians will be changing their habits any time soon with 58% of respondents not planning new investments or at least unsure for 2010.
The survey found skepticism and fear are on the rise with 40% describing their investment personality as “suspicious” or “timid.” That’s up six points from just over a year ago.
Meanwhile, only 29% described themselves as "analytical", "opportunistic" and "risk-taking," down four points from a year ago.
