Aussie investor sentiment remains strong
Australians continue to be optimistic about investment opportunities, their general financial wellbeing and the resilience of the Australian economy, a survey from ING Investment Management has revealed.
According to its quarterly December 2009 Investor Dashboard Sentiment Index survey, Australian investor sentiment is up 124 per cent in the last 12 months — highlighting the rapid improvement in economic and financial conditions. Although Australians rank fifth among the 12 Asian countries surveyed with an overall sentiment score of 148 (up 3.5 per cent on the previous quarter), the country’s confidence based on economic assessment places Australia joint second with Singapore and marginally behind India.
Across the board, all countries in the Asia Pacific region showed optimistic investor sentiment, apart from Japan which slipped into pessimistic territory. Key factors driving sentiment in the Asia Pacific region include the stabilisation of financial markets, the health of local share markets and expectations of improved domestic property prices — with China, Thailand, Indonesia and India more optimistic. Improved feelings towards the US economy and local economic conditions have buoyed optimism.
The findings also revealed 82 per cent of Australian believe their economic situation has improved and that the start of 2010 looks rosy, with 73 per cent expecting the economy to continue to improve over the next three months.
In terms of investment, respondents to the survey showed many Australian investors planned to change their investment portfolio over the next three months, with the majority planning to increase their allocation to superannuation, local stocks and cash. Within local share portfolios, Australians plan to increase their investment in the materials, energy and transportation and warehousing sector, the report showed. The survey also revealed an increased interest in local managed funds/unit trusts, with 24 per cent of respondents using them as an investment tool.
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