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Investing Insights with Tony Alexander: Down but not out

Investing Insights

In July’s report, independent economist Tony Alexander finds investors are not discouraged by tough economic conditions, with most keen to keep investing.

  • Tony Alexander

    Independent economist

Hero image for Investor Insights with Tony Alexander. The word July is centre in big pink lettering, with images of Tony himself, the Sky tower, and metal bullions surrounding.

Each month, Tony surveys over 28,000 Kiwis to find out what they’re investing in and how they’re investing in it. He then analyses their responses and reports on how investment preferences are changing over time. This gives us a look into people’s thoughts on different shares, types of property, active vs passive fund management, whether to use an advisor or an app, which countries to invest in, and much more.

Below, we look at some of the key trends in Tony’s July survey.

Sticking to the plan

Heightened volatility and a general downturn in most asset classes have not put investors off, with more planning to add to their portfolios over the coming year. 

Results from this month’s survey show 71% of investors are still keen to invest—despite the looming threat of a recession, low business and consumer confidence, a cost of living shock, and rising interest rates. That’s up from 69% of respondents last month.

A bar graph showing response to 'are you thinking about adding money to existing or new investments like property, shares etc. in the coming year'? Responses fall from 88% saying 'yes' in September 2021 to 69% in June 2022, before rising to 71% in July 2022.

Bricks and mortar hold up

Plans to buy residential property have snuck back up over the last three months, which could be an early signal of a housing market recovery.   

On the other hand, fewer investors are likely to buy shares in companies with exposure to residential property, possibly reflecting the challenges faced by many businesses in the construction sector.

Shares bought directly or through a managed fund or ETF (exchange-traded fund) remain the favourite portfolio investment choice.

Bar graph showing intention to buy residential sector shares falling from a recent peak of 1.35% of all share buyers in March 2022, to just under 0.8% of all share buyers.

Resource issues

The surging interest in resource sector stocks seen in May’s report appears to have faded. This coincides with the recent pullback in commodity prices as concerns of a global recession grow, which would likely drag down demand—and therefore prices—for resources like minerals and metals.

No place like home 

Investors seem to be taking the doom and gloom-tinged cloud over the Kiwi economy in their stride, with respondents’ preference for New Zealand-listed shares edging up to its highest level in several months in July.

This might’ve come at the expense of Australian-listed shares, with investor interest easing slightly alongside the pullback in resource prices.

Lowering defensives

The uptick in preference for conservative funds seen in May and June has noticeably fallen away this month. Growth and aggressive funds remain the most popular investment style by far.

Bar graph showing the preference toward growth and aggressive managed funds rising from 62% in May 2022 to 68% in July 2022, while preference toward conservative and defensive managed funds decreasing from 9% in June 2022 to 5% in July 2022.
A photo of a hand holding a physical copy of Tony's July Investor Insights report, in front of a light pink background.

Download the report

For a deeper dive, download the full Investing Insights report for July 2022 [PDF, 1.32 MB].

Investing Insights is conducted in partnership with Tony Alexander. All analysis is Tony’s and not influenced by Sharesies.

Ok, now for the legal bit

Investing involves risk. You aren’t guaranteed to make money, and you might lose the money you start with. We don’t provide personalised advice or recommendations. Any information we provide is general only and current at the time written. You should consider seeking independent legal, financial, taxation or other advice when considering whether an investment is appropriate for your objectives, financial situation or needs.

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