Investor confidence softens

by Krizzel Canlas22 Nov 2017
The ABS Investor reveals net investor confidence has fallen to 19% net positive in the three months ended in September compared to the 23% from the previous quarter, and from the two-year high of 25% in the first quarter of the year.

Despite the dent in confidence, ASB said the level is still relatively high and remains well above the low of the 3% seen at the start of 2016. The survey was conducted before the election.

ASB senior wealth economist Chris Tennent-Brown said: “Investor confidence has eased off the peak at the start of the year, but remains fairly upbeat and well above the levels a couple of years ago.

“There has been an amazing run for the share market, and we could understand if the decline in confidence was because of some concern markets aren’t going to sustain their momentum. But that’s not the case - expectations of future returns remain similar to earlier surveys.”

Among non-bank products, own homes (23%) followed by rental properties (20%) currently lead as the investments that provide the best returns, which is somewhat at odds with the inertia seen in the housing market in recent months, Tennent-Brown said.

“But it does provide a signal that investors retain their long-term confidence in property-related investments, despite the slowdown we’ve observed in the market in the months around the general election.”

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