Investor confidence soars
Confidence in investment markets is at its highest level in recent years, according to the latest Challenger/ Assirt Investment Sentiment survey.
Confidence in investment markets is at its highest level in recent years, according to the latest Challenger/ Assirt Investment Sentiment survey.
Investor sentiment rose to its highest level since the survey’s inception nearly seven years ago on the back of record levels of confidence by investors in shares, investment property, managed investments, cash and superannuation.
The investment sentiment index rose 7 points, or17 per cent, to 48 points.
Challenger general manager of strategic marketing, Phil Antman, attributed the buoyant investor confidence to the healthy economic climate and approval for capital gains tax reductions produced by the Ralph tax reforms.
“The reduction in capital gains tax means that investors now have more incentive to invest, particularly in growth oriented investments,” he says.
Confidence in the sharemarket continued to soar and set another all-time high, for the second half year in succession. The index rose 9 points, or 18 per cent, to 58 points.
But while successful big name floats and tax changes have buoyed confidence in the local market, confidence in overseas markets is very low, with the index at 18 points.
However, Antman predicts confidence in overseas markets will pick up as Austra-lian investors become more sophisticated.
It seems Australians are starting to realise that their own home is not necessarily their best investment. The index for investor confidence in their own home was the only investment sector to drop in comparison to the March survey, however, it comes down from a very high level. It remains the category with the highest senti-ment, with an index of 69.
The survey was the first joint project between Challenger and Assirt and includes data on confidence in overseas investment for the first time. The biannual survey was previously known as the IOOF/ Assirt Australians & Their Money survey.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
