Canadians are among the most confident in the world regarding performance of their domestic stock markets, according to the Franklin Templeton Global Investor Sentiment Survey. But despite that trust, most lack a financial plan for retirement.

Results from the survey of more than 13,000 individuals in 12 countries found  43% of Canadian think Canada’s markets will outperform other markets in 2011. That optimism for domestic market performance is surpassed only by respondents in India (61%), Brazil (52%) and Chile (46%).

But despite Canadians’ confidence in their home markets, few seem to have a clear idea of how to invest their money long-term, according to Don Reed, president and CEO of Franklin Templeton Investments Corp. in Toronto.

“Despite their optimism about the markets, many Canadians are poorly prepared for the financial future,” said Reed. “Our survey found 57% do not have a financial plan for retirement and 45% are worried they will not have enough to retire. A financial advisor is critical when it comes to meeting your long-term goals.”

The survey results indicate that overall investor enthusiasm for global markets is expected to climb over the next decade. Half of respondents plan to invest outside their home country in 2011, and 62% of respondents intend to invest in global markets over the next 10 years. Currently, only 34% of those surveyed said they invest outside their domestic market.

“The global economy is improving and investors are looking worldwide for opportunities,” said Greg Johnson, president and CEO of Franklin Resources Inc., the parent of Franklin Templeton Investments Corp. “A diversified portfolio today is no longer just a mix of asset classes but also a mix of geographies.”

The results also suggest that the increasing willingness to invest in global markets is due at least in part to waning confidence in domestic markets. Of surveyed, 67% believe their home stock market will perform the same or worse than other markets in 2011.

Complete survey results can be found here.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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