Investing tips key factor behind portfolio changes
By National Underwriter
By Warren S. Hersch
Investing tips and recommendations are the most likely factors to prompt Canadian investors to make changes to their portfolios, new research shows.
Published by BMO InvestorLine, the survey finds that 65 percent of Canadian investors said that getting a solid recommendation would cause them to buy and/or sell. Other key factors identified by Canadians that would cause them to make changes to their investments include:
- Changes in interest rates (63 percent) and fluctuations in major stock indexes (50 percent) and currencies (42 percent).
- Political/social unrest (44 percent) and natural disasters (43 percent).
- Corporate news such as earnings and product launches (48 percent) and allegations of corruption within a company (44 percent).
The study also finds that, despite the increase in financial news being provided by 24/7 business networks, online publications and social media sources, Canadians have not raised their trading frequency as a result. Only 14 percent of investors reported that they trade more because of the increase in news they receive while 71 percent state that it has had no impact on their trading frequency or style.
"While there's plenty of legitimate and useful information out there, there's also a lot of noise. It's encouraging that Canadians are not being swayed by the onslaught of financial news that we've seen in recent years," said Lazaris. "However, with this increase in available news it's easy to get overwhelmed. Therefore, it's important to continue to keep informed on what's important to you and your portfolio.
Originally published on LifeHealthPro.com