Investors remain undeterred by recent sharemarket volatility, seeing it as an opportunity to buy bargain stocks.
According to a recent Macquarie Bank survey, 68 per cent of the bank’s margin lending clients believe Australian shares represent a better investment than other asset classes and 63 per cent intend using their margin lending facility to buy more investments.
Who’s afraid of the big bad sharemarket?
Investors remain undeterred by recent sharemarket volatility, seeing it as an opportunity to buy bargain stocks.
According to a recent Macquarie Bank survey, 68 per cent of the bank’s margin lending clients believe Australian shares represent a better investment than other asset classes and 63 per cent intend using their margin lending facility to buy more investments.
Head of Macquarie Bank Margin Lending, Scott Young said the survey suggests investors are confident the Australian sharemarket will keep on improving and that they see the current volatility as an opportunity to buy bargain stocks, rather than shift to other investments.
“It appears that the recent market volatility has not dampened the confidence of margin lending clients,” he said.
The survey further revealed that, with an average age of 34, Macquarie’s margin lending clients are comparatively young. Many (42 per cent) of these young clients don’t own property and have between 50 per cent and 60 per cent of total liabilities in margin lending. In the 25-45 age group, investors use up to one third of their uncommitted net income to service their margin lending facility.
