TORONTO, ONTARIO — (Marketwire) — 07/14/12 — Canadians have tremendous pride in and optimism for Canada-s strong economic performance and financial outlook. However a BMO Harris Private Banking study found that many are anxious about how the rest of the world-s financial challenges could affect their portfolios as they approach the second half of 2012.
According to the study, almost three-quarters of Canadians (72 per cent) are worried that global economic troubles may impact Canada-s relative prosperity:
“Though the most recent recession is a few years behind us, the tentative economic recovery in the United States still troubles Canadian investors,” said Paul Taylor, Chief Investment Officer, Fundamental Equities, BMO Asset Management Inc. and investment strategist for BMO Harris Private Banking. “Those concerns are warranted, because Canada is the United States- largest trading partner and it-s only natural that we will be affected by what happens south of the border.”
Mr. Taylor noted that the annual value of Canada-s bilateral goods and services trade with the United States is approximately $600 billion; also, the U.S. is the largest foreign investor in Canada and the most popular destination for Canadian investment abroad. In 2009, American direct investment in Canada was close to $288.3 billion, while Canadian direct-investment holdings in the U.S. reached $261.3 billion.(i)
Other key findings from the study include:
“Canada-s economy remains strong compared to those of our global peers,” said Mr. Taylor. “But while American equity markets have performed fairly well recently, there have been some mixed economic signals coming out of the U.S. over the last year. When combined with the ongoing sovereign debt crisis in the Eurozone and other trouble spots around the world, the time is right for Canadian investors to ensure they balance risk in their portfolios and avoid being overweighed in one specific geography.”
The online survey was conducted by Pollara with a sample of 1,000 adults, between June 14 and June 18.
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(i)Foreign Affairs and International Trade Canada
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