subscribe to our newsletter sign up
‘Cash becomes king’ again with Aussie investors

‘Cash becomes king’ again with Aussie investors

Research from a global asset manager has shown that Aussie investors are once again retreating to cash as the share market continues its rough ride through 2016.

According to Legg Mason’s 2016 Global Investment Survey, investors aged over 40 have upped their investment portfolio’s cash allocations to 28 per cent, overtaking investment in real estate at 25 per cent and domestic equities at 22 per cent.

This follows reports that SMSF trustees in particular are shifting their focus to less-risky assets amid market volatility, with BetaShares research last month finding appetite for alternative asset classes such as gold is on the up.

“Gold is traditionally seen as a safe haven asset and the recent spike in investor interest demonstrates that a number of investors are turning to gold as a store of value as some globally significant central banks are pursuing a negative interest rate policy,” BetaShares managing director Alex Vynokur said at the time.

Legg Mason’s research also found international investors over 40 believe Australia to be the second-most attractive investment opportunity in 2016 after the US, beating Latin America, Asia, UK and the rest of Europe.

These same investors regard Australia and Singapore as having the lowest financial risks as an investment destination.

Conversely, the US is thought to carry greater risk, with 17 per cent of respondents picking the US to have one of the highest investment risks.

The research also found older Australians continue to be less likely to invest internationally compared to other nations, with only two per cent strongly agreeing that they will focus on international investments this year, compared to the global average of 22 per cent.




‘Cash becomes king’ again with Aussie investors
nestegg logo
Promoted Content
Recommended by Spike Native Network
Skeptic - Even the headline is nonsense - how can migration have any effect on the ageing population - it is not like there is a possibility that we will be.......
Contrarian - w ch, you are far too generous in your opinion of this piece on migration’s effect on an ageing population. It is not just one-sided, in fact it.......
Nice to know nestegg... - Agreed - relying on multiples of long term average immigration 'to keep the average age down' is the definition of myopic. Young couples have new kids.......
w ch - Just another one sided article with no comment from experts opposed to immigration at its current vastly expanded rate. Its not matter what you elites.......