Almost a quarter of Canadian investors said in a recent survey that they’re thinking of cashing out their stock investments after a rough year for the markets and rumblings of a possible recession.
But experts are cautioning against rash decision-making in the heart of a downturn. Results from an online survey for price and rate comparison site Finder published last week show 7.5 million Canadian respondents (24 per cent) have no confidence in the stock market and are planning to “cash out” before the end of the year.
The remainder had varying levels of confidence in the stock market, but only nine per cent said they were “very confident” that their portfolio returns would meet or exceed their expectations for the year.
Conditions in the stock market have not improved since the survey was conducted in July. The Toronto Stock Exchange (TSX) hit a new low for 2022 last week, with sectors such as tech taking heavy losses this year. Read more: S&P/TSX composite hits new low for year, U.S.