Dampening demand for global markets
Demand for global investments fell for the first time since February this year as Australian investors revealed themselves to be less likely to invest overseas, according to the Certitude global investing index.
Whilst the level of concern about global markets remains low, the study revealed local investors anticipate that the Australian economy will record healthy growth in the next 12 months and remain confident the All Ordinaries will outperform global markets.
Despite a fall in its popularity this month, the research found that North America once again outstripped other regions and remained the most popular choice for Australian investors, which is perhaps a comment on the pace of economic recovery in the US, as well as uncertainty surrounding the effects of the tapering of quantitative easing.
Intention to invest Western Europe and Asia both gained ground, as investors begin to move on from concerns about the sovereign debt crisis and economic stagnation and are beginning to eye Western Europe with more interest, the study said.
"Results from the CGIII this month indicate that while Australian investors are not worried about global markets, the fact remains that a greater number of investors are looking to actively decrease their exposure to international shares than last month, which may indicate that they are cashing in and taking profits," Certitude Global Investments chief executive Craig Mowll said.
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