##{"id":50932,"date":"2016-12-01T10:19:47","date_gmt":"2016-11-30T23:19:47","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2016\/12\/01\/trump-divides-but-investor-optimism-lifts\/"},"modified":"2016-12-01T10:19:47","modified_gmt":"2016-11-30T23:19:47","slug":"trump-divides-but-investor-optimism-lifts","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2016\/12\/01\/trump-divides-but-investor-optimism-lifts\/","title":{"rendered":"Trump Divides, But Investor Optimism Lifts"},"content":{"rendered":"

The impact on global financial markets of Donald Trump becoming the next US President in January is dividing views and sentiment among investors in Australia.<\/p>\n

The Australian Investors' Sentiment Survey for November<\/strong>, organised by the Australian Investors’ Association (AIA) and FNArena, harvested a wide range of opinions about Trump and potential US policies.<\/p>\n

What cannot be denied is that overall sentiment has improved from two months ago, though the general mood remains more cautious than bullish, notwithstanding a positive response from global equity markets.<\/p>\n

The change in sentiment is clearest in investors' outlook for Australian equities in the short term, with 23% bulls outnumbering 17.5% bears.<\/p>\n

It marks a notable reversal in short term sentiment since September, though the percentages still cannot match the numbers from the July Survey earlier this year.<\/p>\n

At least the percentage of positive views among respondents is larger than negative views, something only seen twice in the prior eight Surveys; in July this year and in July 2015.
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\nTrump aside, there's plenty on Australian investors' minds. One FNArena member wrote: "Very interesting stage in history with respect to impacts of robotics, availability of rewarding jobs, erosion of trust and worrying inequality. Greater risk premium in equities and more volatility."<\/em><\/p>\n

One respondent from AIA opined: "There would appear to be good prospects for an increase in commodity prices."<\/em><\/p>\n

A third respondent stated: "I am finding it hard to find companies that have reasonable dividends and not lose capital value".<\/em><\/p>\n

Six to twelve months out, investor sentiment has deteriorated slightly, but the bulls remain the largest group even extending their gap with those holding a neutral view; 37.5% versus 34.5%.<\/p>\n

Respondents with a negative outlook have now risen to 28%, a level not seen since the 34% recorded in November 2012.
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\nThe Australian Investors' Sentiment Survey has been <\/strong><\/strong>conducted every two months since early 2011. Throughout this period the highest level of cash held peaked at 26% in September 2011. The July Survey earlier this year revealed the lowest cash reading at 16%.<\/span><\/span><\/p>\n

Since the Survey in March respondents can indicate allocations to precious metals and alternative investments, but both continue to represent a tiny slice of portfolios overall.<\/p>\n

The Confidence Index jumped to 57%, the highest level since the 59% measured in July 2015. The Confidence Index remains well above 50 suggesting investors continue to expect positive returns from the share market over time.<\/p>\n

Since 2011, Index values have ranged between 41% and 61%. The last time a reading below 50 popped up was in January this year, in the midst of what at the time appeared a global markets meltdown.<\/span><\/span>
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\nThe Investor Sentiment Survey asked members at Australian Investors’ Association (AIA) and FNArena how they felt about the market and how they were invested.<\/p>\n

184 respondents participated through AIA and 205 through FNArena.<\/p>\n

\nTechnical limitations<\/strong><\/p>\n

If you are reading this story through a third party distribution channel and you cannot see charts included<\/em>, we apologise, but technical limitations are to blame.<\/em><\/strong><\/p>\n

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"