Invest
Global market falls haven’t tamed unrealistic investor expectations
A low growth and low interest rate environment apparently hasn’t put off investors, who are displaying high expectations of their portfolios that are arguably difficult to achieve.
Global market falls haven’t tamed unrealistic investor expectations
A low growth and low interest rate environment apparently hasn’t put off investors, who are displaying high expectations of their portfolios that are arguably difficult to achieve.
The latest Schroders Global Investor Study said high expectations of investors observed the world over “may indicate why over half of investors globally (51 per cent) stated they had not achieved what they wanted with their investments over the past five years”.
Geographically, North and South American investors indicated the highest annual return expectations at 12.4 per cent on average, compared with 10.9 per cent for Australian investors and 9.0 per cent for European investors.
Over 25,000 investors from 32 locations worldwide were surveyed for the study, which showed that around one in six investors globally are expecting at least a 20 per cent annual return on their investments.
“This is despite major stock markets – such as the S&P and FTSE 100 – all experiencing net falls during the previous year,” Schroders reported.
It noted that the average annual return of the S&P 500 since its inception in 1957 is less than 8 per cent.
The Australian statistics derived from the survey showed that domestic investors have reported a desired income of 11.5 per cent on average from their investments over the next year, but expect just 11 per cent, not taking into account cash savings or properties.
But in good news for Australian investors, especially for those expecting higher returns, nestegg recently reported that the ASX Accumulation All Ordinaries Index has provided investors with an 11.4 per cent annualised return since 31 December 1979.
In Australia, desired income and expectations are also influenced by age, with Millennials desiring income of 12.9 per cent, versus Generation X’s hope for 10.8 per cent.
Baby Boomers reported an average expectation of 9.2 per cent, while investors who are 71 years-plus expect to receive 7.7 per cent in income generated through their portfolio.
About the author
About the author
Stock market
Big 4 bank flags remediation hit
One of Australia’s big four banks is gearing up to pay another hundred-million-dollar fine, according to the company announcement. ...Read more
Stock market
What are the top 8 IPOs by trades?
Investors looking to outperform the market are continuing to look at initial public offering stocks despite recent market volatility. ...Read more
Stock market
Small caps predicted to outperform as economy recovers
Investors who shun small-cap stocks may miss out on valuable opportunities as the economy recovers from the COVID-19 downturn, an investment manager has warned. ...Read more
Stock market
What impact will the iPhone launch have on Apple’s share price?
On the eve of Apple’s next-generation iPhone, shares in the company rose sharply, with this rally likely to continue, an industry expert has said. ...Read more
Stock market
How Apple and Tesla are skewing financial performance
Investors are being swayed by a handful of strong growth stocks, which is skewing how they are outperforming value investing, new research has revealed. ...Read more
Stock market
The pros and cons of DIY investing
“Social trading” is being flagged as a very real issue now affecting the Australian stock market – especially as low-cost stock trade platforms gain popularity. ...Read more
Stock market
Where to find dividends in a low-rate environment
Australian investors who are income-focused are still able to find strong dividend-paying stocks, but the market is changing, an expert has said. ...Read more
Stock market
Did investors overreact to the COVID-19 pandemic?
The economic downturn has not hit many sectors of the economy as hard as first predicted, with the reporting season revealing that many sectors will recover quickly, an investment fund has revealed. ...Read more
Stock market
Big 4 bank flags remediation hit
One of Australia’s big four banks is gearing up to pay another hundred-million-dollar fine, according to the company announcement. ...Read more
Stock market
What are the top 8 IPOs by trades?
Investors looking to outperform the market are continuing to look at initial public offering stocks despite recent market volatility. ...Read more
Stock market
Small caps predicted to outperform as economy recovers
Investors who shun small-cap stocks may miss out on valuable opportunities as the economy recovers from the COVID-19 downturn, an investment manager has warned. ...Read more
Stock market
What impact will the iPhone launch have on Apple’s share price?
On the eve of Apple’s next-generation iPhone, shares in the company rose sharply, with this rally likely to continue, an industry expert has said. ...Read more
Stock market
How Apple and Tesla are skewing financial performance
Investors are being swayed by a handful of strong growth stocks, which is skewing how they are outperforming value investing, new research has revealed. ...Read more
Stock market
The pros and cons of DIY investing
“Social trading” is being flagged as a very real issue now affecting the Australian stock market – especially as low-cost stock trade platforms gain popularity. ...Read more
Stock market
Where to find dividends in a low-rate environment
Australian investors who are income-focused are still able to find strong dividend-paying stocks, but the market is changing, an expert has said. ...Read more
Stock market
Did investors overreact to the COVID-19 pandemic?
The economic downturn has not hit many sectors of the economy as hard as first predicted, with the reporting season revealing that many sectors will recover quickly, an investment fund has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
