Investors Continue Shares Love Affair

Australian investors are expecting the good times to continue for the foreseeable future with expectations the next quarter will be a positive one for both domestic and international shares.

The findings stem from the opinions of some 998 investors involved in the latest CoreData Quarterly Investor Index Report, which measures sentiment for the third quarter of the calendar year.

44.0% of investors expect Australian equities to deliver either ‘somewhat better’ (40.3%) or ‘much better’ (3.7%) returns, while 40.1% believe international shares will offer greater opportunities for investors than the current quarter ending June 30.

Do you think the following will be better or worse for investors next quarter?

Source: CoreData Quarterly Investor Index                   N = 998

More investors felt informed enough to make a comment as to next quarter’s direction for Aussie equities, while less people felt they could offer an accurate assessment of global shares markets with almost one in four answering ‘don’t know’ in respect to the outlook for overseas shares.

Meanwhile 30.7% and 22.6% of the almost 1,000 participants felt the three months from July 1 to the end of September would reap neither better nor worse returns for investors than the market today.

The outlook was mixed when the topic moved to residential property with 35.7% expecting it to be either ‘somewhat better’ (30.9%) or ‘much better’ (4.8%) for investors, while 35.8% anticipated it being either ‘somewhat worse’ (33.0%) or ‘much worse’ (2.8%) – with 25.8% neither bullish or bearish on residential property.

When it comes to the relative performance outlook, Australian’s love affair with residential property is not strong enough to warrant anticipated returns on property outstripping those of shares over the coming quarter.

Do you think the Australian share market will outperform residential property?

Source: CoreData Quarterly Investor Index                   N = 998

58.4% of investors in the CoreData Index believe shares will either ‘somewhat outperform’ (48.6%) or ‘significantly outperform’ residential property between July and September.