Investor sentiment well down
Australia has witnessed a significant decline in investor sentiment but people remain relatively confidently about the security of their jobs, according to the latest ING Investor Dashboard Survey released today.
The survey found the Australian Investment Sentiment Index declined by 48 per cent in the fourth quarter of last year, bringing the index down from 131 in the last quarter of 2007 to just 66 last year.
Commenting on the index, the head of products within ING Australia’s life risk division, Gerard Kerr, questioned whether the relatively optimistic view on job security would continue through the first quarter of this year.
He suggested it indicated a “she’ll be right” attitude — something that had also been suggested in recent ING Australia insurance research.
Kerr said the falling investor sentiment figures showed investors were pessimistic about the economic situation, but there was still an element of “it won’t happen to me” around job losses.
“Although this optimism is a great attribute, it becomes a concern if people don’t have a balanced view of what is happening and a plan in place to protect themselves if they lose their job,” he said.
AUTHOR
Mike Taylor
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