Many upbeat about equities: Survey

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#1
Sounds like the frothiness is building up, slowly no doubt, but surely.

The Straits Times
www.straitstimes.com
Published on May 19, 2013
Many upbeat about equities: Survey

But there seems to be disconnect between optimism and how much investors plan to put in equities

By Anita Gabriel, Senior Correspondent

More than half of Singapore investors have turned more optimistic about investment opportunities and could return to the stock market in a big way this year, a recent poll indicates.

And nearly three-quarters of investors - 73 per cent of those polled - believe equities will do well this year, according to Schroders Global Investment Trends Report.

This compares favourably with the global scenario, where some 48 per cent of investors are more upbeat over investment prospects this year than they were last year.

"Investors intend to return to the market in great numbers this year and see opportunities for growth, notably in equities and in Asia," said Schroder Investment Management (Singapore) managing director Susan Soh.

Yet, they are certainly not throwing caution to the wind. There appears to be a disconnect between their optimism over equities and how much they plan to invest in this asset class.

Only 22 per cent are planning to allocate investable funds to high-risk assets - equities - with 42 per cent opting for low-risk investments such as bonds.

One key reason is that most investors here value income generation over capital growth.

The other top asset classes which Singapore investors believe will fare well this year are gold, followed by corporate and government bonds.

But worries that weighed on investors' minds last year still persist.

"It is interesting that while investor confidence is returning, there are still concerns over key risks such as inflation and the euro zone problems," said Ms Soh.

The survey polled 518 investors in Singapore and more than 14,800 active investors across 20 countries in Europe, Asia and the United States.

The chief concern among investors - raised by more than 48 per cent of them - is rising inflation while other key worries include the persistent euro zone debt woes and a weak or prolonged global economic recovery.

In terms of investment budget, Singapore investors are looking to invest close to $80,000 this year on average.

Just under half, or 45 per cent, are planning to invest between $16,000 and $50,000.

More than a quarter are looking to invest $100,000 or more.

Most Singapore investors, or 65 per cent, prefer to invest in the domestic market as they believe it has the best growth potential in the region.

Among the developed economies in Asia, Singapore ranks third in terms of the highest number of investors who have faith in their own markets, with Indonesia topping the list with 86 per cent, followed by Thailand with 70 per cent.

Globally, the home bias stands at 80 per cent among US investors, 55 per cent among Asian investors and 40 per cent among European investors - understandably the lowest given the protracted debt malaise.

The Asia-Pacific region is the most attractive to investors and the pick for 52 per cent of Asian investors and 42 per cent of European investors.

Among Singapore investors, 62 per cent favour this region in terms of rosy investment prospects.

"The findings show that investor sentiment is changing globally with a growing consensus among investors that the global recovery is gathering pace, though at different rates around the world," said Ms Soh.

"With the growing investment appetite, we believe 2013 could be the watershed year in the journey back to a more robust global investment environment," she added.

anitag@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#2
Need a few big successful IPOs to bring in the fresh meat. Hahah.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#3
Income generation......
Sign of our times......Smile
My Dividend Investing Blog
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#4
More upbeat about equities? Spells danger to me
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#5
(19-05-2013, 10:59 AM)Dividend Warrior Wrote: Income generation......
Sign of our times......Smile

You are right in a sense - there is always a hot theme or "flavour of the day", once it was the dot.coms (some now call them the dot.bombs), then it was the S-Chips (who are now known as "ass-chips").

So yes, the current talk of the town is "income, dividends, yield investing, REITs, business trusts" and what-nots.

It is also common knowledge that when you invest in something which everyone else is keenly interested in, you're unlikely to get much margin of safety (though you would get a sense of warm comfort in being with the crowd).
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#6
[img]www.youtube.com/watch?v=vGVJS7dtTe4‎[/img]

Do you still remember this song:-
"Dance little lady dance"
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#7
anyone applying for soilbuild ipo and the taiwan pay tv ipo?
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#8
(19-05-2013, 09:28 AM)Musicwhiz Wrote: Only 22 per cent are planning to allocate investable funds to high-risk assets - equities - with 42 per cent opting for low-risk investments such as bonds.

This seems to say that a lot of people are not going into equities though. Is 22% or so a usual figure?

My current 'feel' about market sentiment seems to be that lots of people have missed the boat and are thinking that the boat will have to come back now that markets seem to be hitting an all time high. And they will only board when the boat returns.

However, broad valuations of approx. 13-14x PE (both on a TTM and CAPE basis) for the STI doesn't make the STI seem expensive by a stretch.

However, on an individual stock basis, bargains are getting much harder to find...
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#9
When everyone on the street is talking about buying equities, it is time to be getting out...
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#10
not yet time to get out.....party just started....
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