Canadian Retail Investors Continue to Favor Technology, Moomoo Canada Survey Shows
-- Investors are divided about whether the US and the Canadian economies will avoid a recession
-- 35% of respondents are bullish towards stock markets vs. 47% neutral
TORONTO, CANADA, 28 Aug. 2024 -- Amid growing market expectations of interest rate cuts by the Federal Reserve and the Bank of Canada in September, the technology sector continues to dominate Canadian retail investors' preferences, revealed a survey conducted by securities broker Moomoo Financial Canada Inc. (Moomoo Canada). Utilities and materials, two defensive sectors, are the next two preferred sectors.
The findings also showed that investors[1] are divided about whether the US and the Canadian economies can avoid a recession over the next six months, with 53% of surveyed users expecting the US to avoid a downturn, compared to 49% in Canada.
Other findings include:
47% of respondents anticipate a recession in the US compared to 51% for the Canadian economy.
35% are bullish towards stock markets for the remainder of 2024 and 47% are neutral.
71% are buying more US stocks than Canadian stocks.
63% are somewhat confident they can meet their investment goals.
"At the time the survey closed on August 21, the S&P/TSX Composite Index was up over 10% since the beginning of the year and the S&P 500 Index over 17%, led by the technology sector. Investors continue to favor this sector, likely reflecting confidence in the promise of artificial intelligence," says Justin Zacks, Vice President of Strategy at Moomoo Technologies Inc. "Given that many of the largest technology companies are headquartered and listed in the US, it comes as no surprise that most Canadian investors continue to buy more US stocks than Canadian stocks."
The next two preferred sectors - utilities and materials - are two defensive sectors, indicative of a cautious approach of Moomoo Canada users. It's consistent with the finding that investors are divided about the possibility of a recession and that nearly half are neutral about stock markets for the rest of 2024. Still, 63% feel somewhat confident they can reach their investment goals, retirement being the main one for 40% of respondents, followed by general savings.
The survey also showed that retail investors look towards institutional investors' decisions as a source of inspiration for their own investment decisions, with 46% of the surveyed users stating that institutional investors' decisions drive their own choices.
For more information about the survey findings, please click here to access the whitepaper or contact media@ca.moomoo.com.
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[1]Moomoo Canada surveyed 536 investors using its platform between August 12 and 21, 2024. The survey was conducted online.
