Pay Attention

If you, like everyone else, are sitting there waiting for a sign that it might be time to get back in the market, sit up and pay attention.

Why? Because the sentiment of the rich, who are commonly a lead indicator when it comes to investing, is turning positive.

This quarter’s CoreData Investor Sentiment Index found that the majority of respondents expect the economy to slow down this quarter compared to last quarter, and that business conditions will deteriorate.

However, high net wealth investors – those with high household income, large investment portfolios and strong investment knowledge and experience – are predicting just the opposite.

This segment of the market, who CoreData typically classifies as ‘controllers’, are expecting the economy to speed up in the next three months and that business conditions will improve.

Do you think the Australian economy will grow at a slower or faster rate (comparing next quarter to this quarter)?

Could the tides finally be turning? Most conservative investors have been scared off equities by the GFC but the longer they wait the greater the opportunity cost.

It might be time to take the plunge.

The Q1 CoreData Investor Sentiment research is available for purchase. For more information, contact CoreData on 02 9376 9608.