Retail investor confidence crashes to two-year low on back of weak economic outlook

Over 20% of investors expect the STI to decline this year.

The J.P. Morgan Investor Confidence Index dropped to its lowest level in two years for the first half of 2015, as retail investors become more pessimistic amid growing expectations of weaker global economy.

The latest half yearly survey fell eight points to 113 in December 2014 from 121 in June 2014. A reading of 100 indicates investor confidence, and while the result is still within the confidence zone, it is the weakest since December 2012 when the Index was at 106.

Investors’ expectation of a weaker global economy was not the only dampening factor. More investors polled are also less bullish on the Singapore economy, the outlook for the Straits Times Index, as well as the Singapore dollar which they see depreciating against the US currency in the coming months.

The proportion of respondents expecting the STI to decline jumped to 21% from 11% in the previous half. Accordingly, the proportion of respondents who expect the STI to increase slipped to 46% from 53% in the June poll.
 

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