Business
83% of investment managers expect S&P/TSX to rise in 2010
83% of investment managers expect S&P/TSX to rise in 2010
About this update from Serrano Resources Ltd.
[{"type":"text","content":"\n\n\n\nDec. 14, 2009 (Canada NewsWire Group) -- TORONTO, Dec. 14 /CNW/ -- It appears the running of the bulls is expected to continue into the New Year. According to the latest Russell Investment Manager Outlook, optimism abounds as 83 percent of investment managers believe the S&P/TSX will experience gains in 2010.\"This confidence is built on a foundation of strong bank earnings, improving economic statistics, rising commodity prices, and a rebounding residential real estate market. Indeed, despite continuing high unemployment numbers, Canada's relative prosperity remains the envy of the world,\" says Sadiq S. Adatia, chief investment officer of Russell Investments Canada Limited.As a result of Canada's stable economy, money continues to flow into the Canadian dollar, helping to keep it aloft versus the U.S. dollar. Sixty percent of investment managers surveyed remain bullish towards the loonie, while only 17 percent expect it to soften in the coming months.Energy and financials remain managers' favourites among S&P/TSX sectorsEnergy continues to be the darling of the Canadian market, with 71 percent of managers bullish and only 14 percent bearish. Financial stocks also remain in favour, with 61 percent of managers bullish and 21 percent bearish.\"With the shares of Canadian oil producers priced for roughly $65/barrel, the recent trading range in the area of $75-plus implies continued upside potential for the Energy sector,\" explains Adatia.\"Sentiment deteriorated slightly since last quarter in the Financials sector, perhaps in reaction to Manulife Financial's dividend cut and equity financing, but bank earnings remain strong and dividends have continued to flow uninterrupted.\"Sentiment towards the information technology sector - often considered a proxy for Research in Motion (RIM) - slipped from 63 percent bullish to 57 percent bullish. \"This may reflect concerns that competition for RIM's Blackberry product is heating up,\" says Adatia.Record-high gold prices continue to prop up sentiment towards the materials sector, which is currently at 54 percent bullish and 32 percent bearish. \"We suspect that the materials sector ex-gold would not garner as strong an endorsement from investment managers,\" says Adatia.The telecom sector continues to hold appeal, with bulls up from 48 percent to 52 percent, and bears holding stea...