Investing Insights with Tony Alexander: Moving back into shares
Tony’s first survey of 2023 finds that investors are more optimistic about buying shares in various forms despite concerns about economic headwinds.
Each quarter, Tony surveys more than 30,000 Kiwis to find out what they’re investing in, how they’re investing, what they're selling, and what’s been on their minds. He then looks at how these preferences are changing over time and why.
Below, we look at some of the key trends in Tony’s latest survey.
Dipping their toe back in
Some recent evidence that inflation has slowed led to investors being more willing to invest. This is in contrast to the last three months, where investors appeared to be spooked by inflation reaching 7.2% and the subsequent sharp rise in interest rates.
What investors are buying
In February shares, managed funds, and exchange traded funds (ETFs) were back on the buy list. The intention to invest in these assets has risen since the November 2022 survey. In fact, the net proportion of investors planning to buy is the second highest since the survey started.
Buying shares in individual companies remains the most popular as the graph below shows:
Property takes a back seat
House buying intentions are at their lowest since the survey started late in 2021. Intensions peaked in September 2022 when the proportion of investors saying they might buy was 32%. This has since dropped to 9% in February 2023.
Fixed interest assets
February’s survey shows that investors have higher intentions to pay off their debts and put money in a savings account. Higher interest rates on simple investments (like bank accounts) have risen sharply from record lows, meaning banks should find it easier to secure deposits.
What’s weighing on investors’ minds
In a new survey section, investors were asked if they’re concerned about their investment returns.
A group of people said that because their focus is on the long-term and not the next 12 years, they’re not concerned about issues they expect to be short-lived, such as inflation, high interest rates, and geo-political uncertainty.
Of those who did express concern, 17% cited inflation, followed closely by 16% who were concerned about a New Zealand recession, and 15% who were worried about high interest rates.
Download the report
For a deeper dive, download the full Investing Insights report [PDF, 1 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.