Investor optimism on the rise

Investors are becoming more optimistic on the Australian stockmarket, according to Investment Trends, while global stability is their biggest concern.

The latest Investor Intentions index by the firm surveyed how active investors felt about the Australian Securities Exchange (ASX) All Ordinaries index and their investment concerns.

March’s data found investors were more optimistic about their expectations for the stockmarket over the next 12 months compared to January and February.

They also viewed participation in equity markets as a reliable mechanism to grow their savings and generate income in a world of low rates. Yield expectations were 3.9%, down from 4.1% in the previous month and the lowest in 15 months.

Irene Guiamatsia, head of research at Investment Trends, said: “Overall, investors tend to be reactive in their outlook, so are more likely to have a negative outlook in the aftermath of a sell-off.

“For example, in January 2022, 33% saw red following the short-lived sell-off originating from the US as markets offered a knee-jerk reaction to the December inflation figures. The situation has significantly improved to a current split of 58% rise vs 24% decline, as at March 2022.”

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When it came to investors’ concerns, the number one issue was the stability of the global economy followed by national security. In third place was inflation, which rose to the highest reading since 2000 last week.

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