Investor sentiment drops as markets rise, survey finds
MWN-AI** Summary
Despite significant gains in the Canadian equity market in 2025, investor sentiment is trending downward, according to the annual Scotia Global Asset Management Investor Sentiment survey. The survey reveals that 44% of Canadian investors feel negatively towards their investments, a notable increase from 32% the previous year. Key concerns affecting investor psychology include rising costs of living, economic recession fears, and the threat of trade tariffs, each cited by approximately 49% of respondents.
The survey also highlights an increasing worry about retirement funding, with 38% of investors expressing more anxiety about their retirement savings than in the past year. This reflects a shift in priorities, as many investors are now focusing on day-to-day expenses and debt management over long-term investment growth. Interestingly, Canadians reportedly spend an average of 18 hours per week worrying about their financial situations.
However, engaging with financial advisors appears to positively influence investor confidence. The data indicates that 86% of individuals who consulted with a financial advisor within the last six months feel more secure in their financial circumstances, contrasting with only 68% of those who have not sought professional advice. Furthermore, more than half of investors indicated they desire additional support from their advisors.
Younger investors, in particular, are experimenting with technology in their investment decisions, with many utilizing generative AI tools and social media for guidance. Despite this, reliance on such tools remains limited, emphasizing the continued importance of traditional financial advising.
Overall, as market conditions remain volatile, the findings underscore the necessity of balanced investment strategies and the role of professional advice in alleviating financial uncertainties.
MWN-AI** Analysis
The recent Scotia Global Asset Management Investor Sentiment survey presents a paradox—despite a significant rise in the Canadian equity markets throughout 2025, investor sentiment has noticeably declined. With 44% of investors expressing negativity about their investments compared to 32% a year prior, it is essential to unpack the underlying factors driving this sentiment and offer practical market advice.
A key takeaway from the survey is the heightened anxiety among Canadians regarding crucial economic issues such as the rising cost of living, the risk of an economic recession, and potential trade tariffs, all of which were flagged by 49% of respondents. This heightened level of uncertainty can lead to a more cautious investment approach, despite the apparent market performance.
For investors, it is vital to strike a balance between short-term needs and long-term goals. While concerns about retirement funding (38% of respondents cite increased worry) and day-to-day financial management are valid, a solid investment strategy requires a long-term perspective. Ignoring growth potential in favor of immediate concerns can result in missed opportunities.
Thus, engaging with a financial advisor becomes even more critical. The survey highlighted that 86% of those who consulted with an advisor in the past six months felt more confident about their financial situation compared to 68% who did not. Regular consultations can help investors navigate their apprehensions and develop tailored strategies to address both short-term challenges and long-term objectives.
Incorporating technology into investment decisions is another emerging trend, particularly among younger investors. While tools like generative AI are gaining traction, most still prefer the personalized advice of financial professionals.
In summary, while market gains are commendable, investors must not overlook the psychological aspects of investing. Consulting with a financial advisor and adopting a balanced investment approach will be essential in managing current market volatility and achieving long-term financial stability.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
Meeting with a financial advisor helps alleviate concerns
TORONTO, Jan. 21, 2026 /CNW/ - Although the Canadian equity market appreciated significantly in 2025, more Canadians are feeling negative towards their investments than a year ago.
Results of the annual Scotia Global Asset Management Investor Sentiment survey, released today, indicate that 44% of investors surveyed are feeling negative about their investments, compared to only 32% a year ago.
Top risks to portfolios over the next one to two years respondents cited were: cost of living (49%), economic recession (49%) and trade tariffs (46%).
Separately, Scotiabank's sixth annual Worry Poll, which looks at how Canadians feel about their finances more broadly, also finds that many are still feeling anxious about their money – with Canadians spending on average a considerable 18 hours per week worrying.
"It is understandable to be concerned about one's investments, and while broad equity markets appreciated significantly in 2025 the ride wasn't smooth. What's key is finding a balance between managing short-term needs while at the same time not sacrificing the growth potential needed to meet long-term goals like retirement," says Neal Kerr, Head, Scotia Global Asset Management.
Retirement savings a greater cause for concern
Approximately four in ten investors (38%) say they are more concerned about funding their retirement than a year ago – and while long-term saving remains the top financial priority for most, more are focused on managing day-to-day expenses (17%) and paying down or restructuring debt (10%) than in 2024.
Professional financial advice spurs confidence
For those who met with their advisor in the past six months, 86% say their advisor makes them feel confident in their financial situation, compared to only 68% who had not met with their advisor in that period. More than half (57%) of investors would like additional assistance from their advisor to feel more confident.
"Regular meetings with financial advisors go a long way to addressing questions and alleviating concerns. Our commitment – to enrich our clients' financial futures with innovative investment solutions delivered in partnership with comprehensive wealth advice – remains critically important, as the survey results show again this year," adds Mr. Kerr.
Younger investors experimenting more with AI, but not exclusively
Some investors are using generative AI tools for investment advice – especially younger investors – but few rely on it completely. Approximately four in ten investors under 40 years old have used social media (43%) or AI tools (38%) to help guide their investment decisions, while total investor use is under 20% for each. However, only 7% of all surveyed investors have made investment decisions based solely on AI recommendations. Approximately two-thirds (65%) of investors under age 40 still use an advisor as the primary way to manage their investments.
To learn more about the survey, click here.
About the Investor Sentiment Survey and Worry Poll
The Scotia Global Asset Management Investor Sentiment survey was conducted by Environics Research from October 28-November 6, 2025. The online survey included 1,045 Canadians, 25 years of age or older with household investable assets of $25,000 or more and who participate in investment decisions for their household. The data was weighted by age, gender and region and household investable assets to reflect the population.
The Scotiabank Worry Poll was conducted from August 28 to 29, 2025, with a nationally representative sample of 1,516 Canadians (18+ years). Interviews are conducted online with sample drawn from the Maru Voice Canada panel. The data was weighted by age, gender, and region to be representative of the Canadian adult population. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of ±2.5%, 19 times out of 20.
About Scotia Global Asset Management
Scotia Global Asset Management® is a business name used by 1832 Asset Management L.P., a limited partnership, the general partner of which is wholly owned by Scotiabank. Scotia Global Asset Management offers a range of wealth management solutions, including mutual funds, ETFs, liquid alternatives, private asset funds and customized investment solutions for institutions and managed asset programs. For more information, please visit www.scotiagam.com
About Scotiabank
Scotiabank's vision is to be our clients' most trusted financial partner and deliver sustainable, profitable growth. Guided by our purpose: "for every future," we help our clients, their families and their communities achieve success through a broad range of advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With assets of approximately $1.5 trillion (as at October 31, 2025), Scotiabank is one of the largest banks in North America by assets, and trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on X @Scotiabank.
SOURCE Scotiabank
FAQ**
What specific factors are contributing to the rise in investor negativity despite the significant appreciation of the Canadian equity market, as indicated in the Scotia Global Asset Management Investor Sentiment survey released by Bank of Nova Scotia (The) BNS:CC?
How do concerns about the cost of living, potential economic recession, and trade tariffs correlate with the overall drop in investor sentiment among Canadians, as revealed by the survey conducted by Bank of Nova Scotia (The) BNS:CC?
In what ways can regular meetings with financial advisors enhance investor confidence, particularly for those who have expressed increasing worries over retirement funding, as noted in the Scotia Global Asset Management survey by Bank of Nova Scotia (The) BNS:CC?
Given that younger investors show a tendency to use AI tools and social media for investment guidance, how might this trend impact their long-term investment strategies and overall sentiment, considering the findings from the survey conducted by Bank of Nova Scotia (The) BNS:CC?
**MWN-AI FAQ is based on asking OpenAI questions about Bank of Nova Scotia (The) (TSXC: BNS:CC).
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