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Investors consider shares ‘a safer bet than property’

More than half of online investors view shares “as a safer bet than property” in a low interest environment, a new study has found.

According to Investment Trends’ Online Broker Report for the first half of 2019, which is based on a survey of 8,578 investors and traders, more than half, or 54 per cent, consider investing in shares a “safer bet than property” and 84 per cent agree that equity investments can help achieve their financial goals sooner. 

Recep Peker, research director at Investment Trends, observed the “growing anxiety” among online investors about the low interest rate environment in Australia following two consecutive cash rate cuts by the Reserve Bank, especially against the backdrop of negative yielding debt in European markets blowing out to more than $15 trillion. 

Concerns about interest rates were expressed by 33 per cent of the online investors that were surveyed in June this year, compared to 16 per cent in May. 

“While it is unclear if negative interest rates will spread to other major markets, it is evident that Australian investors are increasingly concerned with this potential development,” Mr Peker said. 

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“Looking forward, low interest rates will increasingly impact the investing decisions and preferences of Australian investors as they seek to preserve and grow their wealth in uncertain market conditions.”

In addition to interest rates, other top concerns for online investors include: tensions between the US and China (55 per cent), the Australian economy (46 per cent), slowdown of China’s economic growth (45 per cent), the White House administration (39 per cent), global debt levels (37 per cent), global sharemarket crash (37 per cent), and Australian debt levels (32 per cent).

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>According to Investment Trends’ Online Broker Report for the first half of 2019, which is based on a survey of 8,578 investors and traders, more than half, or 54 per cent, consider investing in shares a “safer bet than property” and 84 per cent agree that equity investments can help achieve their financial goals sooner. 

Recep Peker, research director at Investment Trends, observed the “growing anxiety” among online investors about the low interest rate environment in Australia following two consecutive cash rate cuts by the Reserve Bank, especially against the backdrop of negative yielding debt in European markets blowing out to more than $15 trillion. 

Concerns about interest rates were expressed by 33 per cent of the online investors that were surveyed in June this year, compared to 16 per cent in May. 

“While it is unclear if negative interest rates will spread to other major markets, it is evident that Australian investors are increasingly concerned with this potential development,” Mr Peker said. 

“Looking forward, low interest rates will increasingly impact the investing decisions and preferences of Australian investors as they seek to preserve and grow their wealth in uncertain market conditions.”

In addition to interest rates, other top concerns for online investors include: tensions between the US and China (55 per cent), the Australian economy (46 per cent), slowdown of China’s economic growth (45 per cent), the White House administration (39 per cent), global debt levels (37 per cent), global sharemarket crash (37 per cent), and Australian debt levels (32 per cent).

[Related: Mortgagors less comfortable with net wealth]

 

Investors consider shares ‘a safer bet than property’
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