With global stock markets rattled by the European debt crisis, Canadians are feeling less optimistic about their retirement savings recovering to pre-crisis levels within three years than they were a year ago, a poll released Tuesday found.
Only 19% of Canadians think their savings will recover in three years or less, compared with 31% this time last year, according to the survey by Edward Jones.
"When it comes to portfolio recovery, as frustrating as it may be sometimes, a healthy recovery takes time," says Kate Warne, Canadian market strategist with Edward Jones. "In this current economic climate, slow and steady wins the race."
The U.S. Dow Jones industrial average had its worst May since 1940, dropping almost 8% as the sovereign debt crisis in Europe panicked investors. In Canada, the S&P/TSX lost almost 4%.
Edward Jones recommends investors have a diversified portfolio of assets and focus on long-term investments rather than taking bets on what will be the next hot market or commodity.
It also warns against having too heavy a weighting in fixed-income products that may hold back recovery.
