Investors’ return expectations turn negative

returns/funds-management/financial-planning/GFC/investment-trends/

6 November 2018
| By Oksana Patron |
image
image
expand image

Australian investors’ expectations for share market returns turned negative for the first time since the global financial crisis (GFC), according to Investment Trends’ October 2018 Investors Intentions Index, which tracks investors’ intended investments.

The study showed that the expectations fell sharply in October and Aussie retail investors were expecting this trend to persist over the next 12 months.

In October the average capital gain expectation of investors dropped to -1 per cent, down from 1.2 per cent in September and 4.7 per cent in January.

According to Investment Trends’ research director, Recep Peker, investors believed that domestic markets would be lower in 12 months’ time, with major global issues, not returning volatility, driving their pessimism.

“Whether directly or indirectly, Australians are concerned about the economic outcomes of the current White House administration and the trade policies being implemented both by the US and in response to them,” he said.

“With capital gain expectations for the Australian stock market turning negative at the same time that the local property market has cooled, financial services firms of all kinds will need to work hard to convince Australians to stay invested through the current cycle.”

Contrary to 2017, this year investors’ concern levels reached a 22-month high and only 27 per cent of them cited share market volatility as their major concern.

At the same time, 46 per cent said they were most concerned about the current White House administration, 40 per cent said it was tension between the world’s major economies, with a further 33 per cent and 32 per cent citing global debt levels and a China slowdown, respectively.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND