Cautious Australian consumers have more confidence in the share market becoming more profitable over the next year than any other investment sector, a national survey has found.
The Priority Lending poll which asked “Which investment sector do you believe will be the most profitable over the coming year?’ found 33 per cent thought shares were most likely to be on the rise.
Thirty one per cent of those surveyed said residential property would be the most profitable sector, nine per cent said commercial property while 10 per cent thought cash/savings was the best option.
But in a reflection of the ongoing caution among consumers, 17 per cent of the 823 online poll respondents believed they would be better off putting their money “under the mattress”.
“Australians have modest expectations for the economy,” said Priority Lending corporate spokesman Paul Smith.
“With savings being a particular priority for many Australians and caution being applied to nearly every financial decision, shares and property investment hold the most attractive risk/reward balance.
“It is alarming though that one in five respondents to our survey believe the best place to invest their money is under the mattress.
“There a lot of uncertainty about the economy despiteAustraliaso far avoiding the debt crisis that has plaguedEurope.”
Mr Smith noted that of Gen-Y respondents, only 27 per cent selected shares while 31 per cent tipped residential property.
He said cautious consumers were craving another reduction in official interest rates by the Reserve Bank of Australia (RBA).
“The RBA has left the cash rate at 4.25 per cent since December but there is mounting evidence for a rate cut when its board meets next month,” he said.
Priority Lending survey results:
Which investment sector do you believe will be the most profitable over the coming year?
Shares – 33%
Commercial property – 9%
Residential property – 31%
Cash/Savings – 10%
Under the mattress – 17%
Source: Priority Lending
