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Poor investor sentiment to continue: CFSGAM

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By Samantha Hodge
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1 minute read

Poor investor sentiment is expected to continue, however investors are showing renewed interest in income from Australian shares, CFSGAM said.

Weak investor sentiment is expected to continue for the remainder of the year with low confidence driving a renewed focus on high yielding stocks, according to Colonial First State Global Asset Management (CFSGAM).

"The feeling out there from when I talk to clients and financial advisers, certainly the sentiment is still pretty weak," CFSGAM senior analyst of investment markets research Belinda Allen told InvestorDaily.

The prolonged market volatility, weak consumer confidence and global issues, such as the European debt crisis and weakening growth in the United States and China, continued to put investors on the sidelines, she said.

"I can see it dragging on for the remainder of the year just given a lot of global issues are certainly dominating the landscape," she said.

But she also noted a renewed focus from investors on income derived from Australian equities.

"[We've] seen some flows into high yielding stocks, that's been a real development over the past six months in particular so I think people are becoming a little bit more savvy and particular about how they're getting their exposure," she said.

But Allen warned investor risk tolerance has also dipped meaning the market may see flow back into lower volatility products.

"I think it's going to have to take many months of lower volatile positive returns to get people into those high-growth investment classes," she said.

Poor investor sentiment to continue: CFSGAM
Poor investor sentiment is expected to continue, however investors are showing renewed interest in income from Australian shares, CFSGAM said.
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