FYI | Oct 03 2011
Investors in Australia have used the uncertainty and extreme volatility in share markets over the past two months to further reduce exposure to higher risk equities in favour of pure plain cash in the bank.
Judging from comments and views from participants in the September Investor Sentiment Survey conducted by the Australian Investors' Association and FNArena, investors are in no hurry to return into the share market, with 40% of participants suggesting they believe there is probably more downside on a six months view.
According to the September Investor Sentiment Survey, the average investment portfolio in Australia now has 26% in cash, and only 44% in equities. Two months ago, these percentages were at 21% and 49% respectively.
Participants in the survey indicated a large portion of their remaining equities comprised of dividend paying stocks.
Reports Heather Cook from Gwelup, WA: “While I am bearish on the investment markets, I also think it is a great time to buy fundamentally sound, high dividend paying stocks and well located property in Australia for the medium to long term, however patience may be required as prices may not pick up any time