As many know, Canadian stocks have not seen the same success, or interest, from retail investors since the market crash of 2020. There is however, hope for a return of retail investors in 2024, according to Richard Carleton, a Toronto-based investor and CEO of the Canadian Securities Exchange.
Carleton recently gave an interview to the Financial Post in which he discussed the potential return of retail investors to the Canadian stock market in 2024. He noted that, despite the current situation, there could be an increase in primary securities offerings, which could bring renewed interest from investors.
Carleton commented, “The Canadian securities industry has been in a bit of a funk. But due to a variety of factors, I think some investors may start taking a closer look at Canadian stocks as early as 2024. There’s an opportunity to move forward on the back of a recovery in the Canadian economy.”
The Toronto-based investor also stated that the anticipated increased availability of capital, due to more institutional and foreign investors entering the market, would also help to attract new retail investors. He added that the potential for more capital would make it easier for companies to finance growth and expansion, which could further attract diverse sources of capital.
Carleton went on to note that government policies, such as tax incentives, could also help to create a more favourable environment for investing in Canadian stocks. Additionally, the Canadian Securities Exchange plans on launching a new product, the CSE Venture Fund, which will provide diversified access to micro- and small-cap equity markets in North America.
In conclusion, it appears that the Canadian stock market has some potentially bright prospects for the year 2024. Richard Carelton noted that a combination of government incentives and the availability of capital should help to create a conducive environment that will attract more retail investors. In any case, investors are sure to keep a close eye on the situation as the year 2024 approaches.