Investors are taking a longer term view amid global markets turmoil reveals the Friends Provident International Investor Attitudes report.
The Friends Provident International Investor Attitudes report is a quarterly publication that provides a detailed study of attitudes toward current investment conditions, investment strategy, investment time horizons and attitudes to risk in Hong Kong, Singapore and United Arab Emirates.
The report reveals the steady return to confidence seen each quarter since the report launched in June 2010 has stalled. Unsurprisingly the market uncertainty has made people wary about short term investment with most choosing a mix of terms and longer term strategies.
A decrease in confidence is visible in The Friends Investor Attitudes index scores, which have dropped or stayed the same, across the regions, for the first time since the research began.
Singapore has dropped five points from 21 to 16; equities/shares and property have seen the sharpest decline in popularity, all the asset classes have dropped in favour except collectables, which has remained stable.
The United Arab Emirates (UAE) leads the group for the first time with an index score of 17 but this has dropped one point from the last wave.
The static index score of 15 in Hong Kong masks a significant decrease in the popularity of equities/shares and property asset classes. The perceived safe haven of gold still maintains the lead as the most preferred asset class.
The investment outlook in the current market and the market in six months' time has declined significantly across all three regions, with Hong Kong showing the lowest level of confidence, followed by Singapore.
In Hong Kong over 50% of respondents believe that interest rates will rise in the next six months.
"For the first time since the research began there has been a significant drop across all three regions in the number of investors who would choose a short term investment strategy," notes Paul Tunnicliffe, managing director at Friends Provident International.
Tunniclife notes the research was conducted just prior to the global markets turmoil created by the stock market plunge and the US debt crisis; this explains the cautious attitude revealed in the results of this wave.
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