Nearly 2 out of 10 investors to cut their financial investments

Pessimism in the domestic and global economy strikes yet again.

According to a survey released by J.P Morgan Asset Management, Singapore retail investors are turning slightly optimistic in their investment outlook for the next six months compared with half a year ago.

The survey showed an upturn in investor sentiment from the lowest confidence level  registered since the semi-annual poll was first conducted at the end of 2010. From the low point of 86 registered this January, the J.P. Morgan Investor Confidence Index climbed 15 points to 101 in the latest survey conducted between May 29th to June 7th 2012.

But the increase was not enough to signal a strong return to optimism as the Index was just above the 100 points  required for an optimistic reading.

In keeping with the less gloomy, still cautious outlook, four in 10 of the 500 respondents indicated that they plan to increase their financial investments while 16% plan a reduction, compared to 25% who wanted to lower their market exposure six months ago.

In this 4th poll, more respondents are expressing confidence in an increase in the Straits Times Index, an improvement in the Singapore investment market and an appreciation in their portfolio. They are also more likely to increase their investments in the next six months. But their optimism on these four categories was offset by continued pessimism in the domestic and global economy (98 and 83 points respectively). The intention to increase investment scored the highest among the Index’s six components, from 105 in December 2011 to 115 in June.

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