Investor sentiment hits highest level in 15 months
Investor sentiment has hit its highest level in 15 months, though it remains in negative territory, according to CoreData's quarterly Investor Sentiment Index.
According to the index, investor sentiment rose from -23.5 to -9.9 during the third quarter of 2012, which marks the 10th consecutive quarter where the index has been negative.
This highlights the prolonged effect of the global financial crisis on Australian investor confidence, according to CoreData head of advice, wealth and super Kristen Turnbull.
"Investor sentiment has rebounded to its highest level since Q2 2011, but the past several years of volatility have left investors cautious about backing their instincts and getting back in the market," Turnbull said.
But while sentiment towards property remained negative throughout the third quarter, investor sentiment towards equities rose sharply to -3 from -25.9, and cash dropped in popularity.
Despite the more positive outlook in the next three months, Australian investors are still not willing to act, with investment intentions remaining low, Turnbull added.
"Almost half of Australian households say that they're saving at least a little, which is the highest proportion of households saving since Q1, 2010," she said.
"There are, however, around one in five households that are either running into debt or having to draw on savings, reflecting a continued polarisation across the country."
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