Retail investors are losing confidence in local investment markets.
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Retail investors are losing confidence in local investment markets, but have increased expectations in overseas markets.
A survey by Chartered Accountants Australia and New Zealand (CAANZ) showed confidence in domestic markets fell to 73 percent from 77 percent.
At the height of the Covid-19 pandemic in 2020, that confidence was at 83 percent.
Confidence in publicly listed companies also faded to 76 percent from 80 percent last year and 86 percent in 2021.
In contrast, investor confidence in overseas markets climbed from 64 percent in 2020 to 81 percent in 2024.
CAANZ reporting and assurance leader Amir Ghandar said inflation was the main driver for the drop in sentiment.
“Anxiety around interest rates, future pandemics, climate change, and tax policy have fallen off big time – it’s all about inflation in New Zealand.
“The survey indicates that Kiwis perceive the rest of the world is doing much better in the fight against inflation, and that other global economies have broken through with rate cuts or positive central bank signals.”
He said the last four years “have been a rollercoaster”.
“So it’s not surprising that many investors think there’s greener pasture overseas. Whether that’s true or not, this sentiment impacts the volume, type and location of investment.”
The survey also showed more than half said they would increase investment in the next 12 months – and that auditors were the most trusted group when it came to protecting them as investors and strengthening market integrity.
