Online survey by Australian online investment resource Direct Access finds that more than two thirds of respondents predict continued returns of 10 per cent or more over the next couple of years.
Just under two thirds of respondents to an online survey by Australian investment resource Direct Access predict continued returns of 10 per cent or more on their investments over the next couple of years.
Eight per cent of respondents predict potential returns over 20 per cent and 21 per cent believe the market will actually slow to returns under 10 per cent.
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A recent survey by one of Australia's leading online investment resources, Direct Access, has found that despite recent volatility in the local sharemarket the majority of survey participants remain confident in their outlook, with 64 per cent predicting the market will continue to deliver returns greater than 10 per cent over the next couple of years.
A further eight per cent of respondents predict potential returns greater than 20 per cent, while 21 per cent believe the market will actually slow to returns lower than 10 per cent.
Just three per cent of respondents believe there will be a major correction resulting in significant shareholder losses.
When asked whether the Australian sharemarket is over-valued following the recent correction, a massive 78 per cent of respondents answered 'no', suggesting this fluctuation has done little to dent the confidence of many Australian investors.
"This is an encouraging response from the survey participants and reflects their underlying confidence in the economy despite the recent volatility in the global market," said Blair Cooke, spokesperson for Direct Access.
"There is still cause for caution, of course," continues Cooke. "Even if we continue to see the market recover, as it has done over the past week, investors need to assess their individual situations and ensure they are sufficiently diversified to cope with any further instability. Managed funds can be a valuable diversification tool since they provide exposure to a number of asset classes."
Almost half of all those surveyed on the company website believe the greatest risk to the performance of the Australian sharemarket is a US-led recession.
A further eight per cent fear over-valuation could be a risk factor, while 10 per cent are concerned about the effects of excessive borrowing and 13 per cent believe a change in federal government would have a negative impact.
"It seems investors visiting Direct Access are confident the Australian share market will rebound from this correction, with a significant 47 per cent of those we surveyed still planning to invest in local shares in the next one to two years."
"There are never any guarantees, of course. Investors need appropriate investment strategies to ensure they are investing in the right areas for their situation under the current conditions."
