NZ Investing Tip: Shares Return To Favour In Aust
October 5th, 2009
Where Aust goes, NZ follows fairly closely behind, so news Aust investors are shaking off the Global Financial Crisis and are seeking to re-invest hoarded cash back into the sharemarket will be of interest. A survey of more than 3000 Aust investors has found 38% of self directed investors intend to increase their market exposure over the next six months, while only 4% are intending to decrease exposure.
The most significant shift in respondent investor’s portfolios will be increased investment in shares, expected to rise 7.2 percentage points to 61% of the value of investor’s total portfolio values.
Of the equity classes Aust small caps are expected to gain most out of this realignment, with investment in this class of share rising 3.1 percentage points to 29%. In a relative increase investment in emerging markets will rise from 2 to 3% and Aust resources from 11 to 13% of total portfolio mix.
Holdings in cash are expected to fall 6.3% to make up 13% of the average portfolio. Despite recent problems with people borrowing to invest, 47% of Aust investors intend to increase their level of investment funded by gearing, while 65% will increase their level of gearing to develop their portfolios.
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