Investors ‘regaining global confidence’

Irish investors are rapidly regaining confidence in the global economy, according to the latest RaboDirect Investor Barometer.

Some 57% of Irish respondents are confident about the development of the global economy over the next three months, a figure which compares remarkably well with the 9% who expressed confidence when asked the same question in Dec 2011.

A sizeable increase in expectations for the domestic economy is also evident, with 37% of respondents saying they are confident about the development of the Irish economy over the next three months compared with 21% last December.

RaboDirect investment manager Killian Nolan said: “With most markets giving a positive return year to date, investors are showing an interest in opportunities they may have shied away from last year. Among the most popular of these are emerging economies and Asia, according to recent results.

“While we’ve seen a clear upturn in investor sentiment, it remains to be seen whether this will hold up throughout the course of the year and if the markets have any more surprises in store,” said Mr Nolan.

On a personal level, investors are more optimistic with 74% saying they are confident in their financial situation over the next three months compared with 58% in December.

Investors are now also more favourably disposed to the global stock market, with 66% saying there is value to be had on global stocks compared to 52% who held this view in Dec 2011.

The emerging markets continue to be the region most investors would consider investing in (35%), followed by Asia at 26%, the US at 23% and Europe at 16%.

Even though confidence in the property market remains fragile, there are signs of improving sentiment among Irish investors, with 15% of respondents saying they would be confident investing in the Irish property market over the next three months (Dec 2011: 5%) and 27% of respondents expressing confidence in global property (Dec 2011: 9%).