The retail investing landscape in Canada has fundamentally changed over the past five years, according to Richard Carleton, CEO of the Canadian Securities Exchange (CSE). Carleton believes that by 2024, there will be a significant return in retail investors to the markets in Canada.
The introduction of robo-advisors has revolutionized the way retail investors make their investments. According to Carleton, these robo-advisors are making it simpler and more accessible for individuals to invest in the markets without having to go through the traditionally more complex and time consuming process of stock brokerages.
In light of this, Carleton is of the view that Canadian stocks could see a surge in retail investors in the near future. He points out that investors have an appetite for risk and are looking for long term investments that can help them to better manage their wealth. He believes that these investors have the potential to play a big role in the markets in terms of creating liquidity and driving capital growth.
In addition to the accessibility and convenience of investing through robo-advisors, Carleton believes that the Canadian markets have also become increasingly attractive for investors in recent years. He notes that there is now a wide range of companies with a variety of different stocks available in the market; thus, providing investors with greater choice and flexibility.
The overall sentiment towards Canadian stocks seems to be positive and Carleton hopes that retail investors will soon return in force. He envisions that in only a few years, there will be an influx of a new breed of investors in the market who understand the potential and are willing to take the risks involved in stock trading.
However, Carleton does point out that there are still several challenges that have to be overcome before the retail investors can reach the level of participation that he hopes for. He notes that educational initiatives need to be taken by financial institutions to better inform individuals on how to make smart investments. He also believes that more incentives should exist to attract retail investors back to the markets.
It is clear that the future of investing in Canada is likely to be characterized by an increase in retail investors. Carleton believes that by 2024, these investors will be actively participating in the markets and driving capital growth. As the investors become better educated, the Canadian stock market could potentially reach the levels of participation that he imagines for the next five years.