Investor sentiment slumps to GFC levels
Investor sentiment has taken a dramatic fall in the third quarter of 2011, dropping to the lowest level since the first impact of the global financial crisis, according to CoreData.
CoreData has released its Investor Sentiment Research Report, which found investor confidence was sitting at negative 21.7 - a drop of 15.7 points from the previous quarter.
The survey, which involved 820 participants, also revealed one in four Australians were struggling financially, with 15 per cent drawing on savings and 11 per cent running into debt to make ends meet.
CoreData's head of advice, wealth and super, Kristen Turnbull, said investors were shaken by the recent US and European debt crisis and are concerned over the fallout of economic uncertainty.
"80 per cent of respondents predict an economic slowdown over the coming quarter; investors have become much more negative about business conditions, with 68 per cent expecting them to deteriorate - up from 44 per cent last quarter," Turnbull said.
The report also found that investors without a financial planner were more likely to invest more money into an existing investment (23 per cent) than those with one (17.5 per cent).
All investments - apart from residential property - are expected to perform worse in the next three months, according to the survey.
Recommended for you
A strong demand for core fixed income solutions has seen the Betashares Australian Composite Bond ETF surpass $1 billion in funds under management, driven by both advisers and investors.
As the end of the year approaches, two listed advice licensees have seen significant year-on-year improvement in their share price with only one firm reporting a loss since the start of 2025.
Having departed Magellan after more than 18 years, its former head of investment Gerald Stack has been appointed as chief executive of MFF Group.
With scalability becoming increasingly important for advice firms, a specialist consultant says organisational structure and strategic planning can be the biggest hurdles for those chasing growth.
