Investor sentiment is flying high
Australian investor sentiment has reached a four-year high, climbing seven points to 41 since the last time the survey was run last November.
The survey, conducted by ASSIRT and IOOF, also reports record highs in Australian equities, home ownership and superannuation. The Australian equities sentiment rose 16 points since the last survey to reach a new high of 49 points.
ASSIRT market analyst Sara Jackman says the recent floats, rising share ownership and the performance of the ASX all show that the public is feeling more confident about adding Australian equities to their investment portfolios.
The home ownership index reached 71 points in this survey, up three points from November, another new high.
IOOF senior economist Frank Uhlenbruch says low mortgage rates, with little pressure from the Reserve Bank to raise them, should keep investor sentiment high in this category. The investment property survey reported a four point rise to 56 during this period.
The sentiment regarding superannuation reached its highest level since the surveys were started. The figure rose nine points to 56.
Sentiment in managed investments rose from 38 points in November to 50 in this current survey.
Negative investor sentiment was again directed at cash which fell to -6 during the survey period.
Jackman says this is understandable given the strong returns all the other investment sectors are offering.
"With the current low interest rate environment, investing in cash provides a low return. This type of investment is increasingly seen as mainly suitable for the investor seeking very low risk or a temporary place for savings," she says.
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