Investor sentiment remains high
Despite a slight bump in "fear levels" for the month of March, investor optimism is still on a high, according to a new survey by Investment Trends.
Investor concern levels fell to a 41-month low of 5.9 out of 10 in February, but they bounced back in March on the back of increased market volatility.
"Investors are not back to panic stations yet by any means, but were feeling much more cautious in March than February," said analyst Kristin Bjerregaard. "Investors expressed increased concern over last month's volatility, Cyprus/Europe contagion and safety of their superannuation."
Return expectations have also somewhat decreased, but they were higher than the average for the last 12 months.
Around 60 per cent of investors expected the market to increase in the next month, which is 29 per cent more than in December 2011, but down from 74 per cent in February.
"For the second time in the last three months, more people plan to sell down term deposits than increase their exposure," Bjerregaard said. "This did not happen at all last year."
Furthermore, low interest rates have resulted in renewed appetite for property.
"Two thirds of investors still expect the next interest rate movement to be downwards, though this is notably lower than last month's four-in-five expecting a cut," Bjerregaard said.
"Low interest rates and market uncertainty are also prompting a large rebound in interest in investment property, with more planning to buy than sell, and by an increased ratio versus February."
Recommended for you
WT Financial has announced its second “Hubco” with a combined valuation of $7.8 million, while its first one has successfully incorporated and is now making its own acquisitions.
Remediation and litigation costs have led AMP to announce a reduced statutory net profit after tax of $98 million for the first half of 2025.
Stakeholders in the professional year discussion underscore the challenges in the current pipeline and what is holding back licensees from taking on new candidates.
Colonial First State has partnered with JP Morgan Asset Management to make its inaugural private equity allocation, continuing the firm’s expansion into unlisted asset classes.
