Optimism among investors at a high

Economic optimism among Irish-based investors has hit a four-year high, with 82% saying they are confident the economy will continue growing and a similar percentage upbeat about their own financial stability, according to a new survey.

According to RaboDirect’s latest investor barometer, 85% of Irish investors are confident about the outlook for the global economy, while 66% say they are favourably disposed to the global stock market and see there being value to be found in stocks.

The RaboDirect investor survey represents significant recovery from the all-time low of 2010 when only 10% of Irish investors expressed confidence in the domestic economy.

“We’ve seen a sustained rebound in investor confidence in the global economy since the beginning of 2013 and this has now been matched by a strong upturn in confidence in the Irish economy during the first half of this year. This is in stark contrast to the lows seen at the end of 2010 when Ireland applied for external assistance from the EU/IMF,” according to the online bank’s investment manager, Killian Nolan.

“The turnaround in investor sentiment is due largely to recovery in the global economy which is gaining traction and also the more positive forecasts for the domestic economy.

“Another key factor contributing to investor optimism is the historically low interest rates set by the ECB which look set to continue for the foreseeable future. This is driving a search for better yields and making investment opportunities such as global stocks a more attractive proposition,” he added.

This sentiment is reflected in investors’ preferred asset classes, with 51% indicating a preference for equities, 24% preferring the safety of cash, 11% looking to bonds and 14% to property.