Trading numbers reveal bearish outlook

australian-equities/australian-share-market/ASX/united-states/

2 June 2014
| By Staff |
image
image image
expand image

Investors are increasingly positioning their portfolios for a potential pullback in the share market, despite Australian equities trading near six year highs, according to Betashares.

The data reveals the average daily value traded of the firm's inverse Australian equities fund, had increased by 40 per cent last month. The fund is traded on the ASX and is designed to obtain returns that are negatively correlated to the Australian share market.

The increased trading in the shorted fund may indicate cautious sentiment amongst segments in the Australian investor community, BetaShares managing director Alex Vynokur said.

He said this seems to reveal an undercurrent of nervousness in the domestic equities market following the federal budget announcement and its impact on consumer confidence.

Additionally mixed economic signals from international markets are contributing to the bearish outlook.

"We have had a continual stream of mixed data from key economies such as the United States, Europe and China which is causing investors to consider protecting their portfolios from downside risk," Vynokur said.

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?...

5 months 1 week ago

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

5 months 1 week ago

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

7 months 1 week ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

3 days 1 hour ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 4 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5