South Africa’s market perceptions for 2015 is down, this according to the Global Investor Sentiment Study.
The Global Investor Sentiment Study said the previous year's market evaluations remained consistent for investors in South Africa.
“Fifty per cent of investors in South Africa continue to feel that the previous year’s market improved in performance,” said the study.
“Those who felt previous year market performance was up significantly declined, however those who thought that it was up slightly increased, maintaining overall positive evaluations.”
The survey said, slightly more than half of investors in South Africa feel that the market will improve in 2015 (53 per cent), a decrease from those who thought current year market performance would improve in 2014 (62 per cent).
“More investors this year believe that the market will remain essentially flat at 23 per cent. Investors in South Africa are most concerned with the state of the local economy, followed by unemployment and inflation.”
The study also showed a 62 per cent of investors cited the state of the local economy as a primary concern in 2015.
“[45 per cent] of the surveyed saw a sustained weakness of the rand having caused inflationary concerns amongst investors in South Africa despite declining future market perceptions, investors remain optimistic about reaching their goals in 2015,” added the study.
“83 per cent of investors are optimistic about reaching their financial goals in 2015, consistent with the 87 per cent who felt this way in 2014.”
According to the survey, a greater number of investors anticipate adopting a more conservative approach this year in order to do so.
The Global Investor Sentiment Study said planning for retirement was a top investing goal in South Africa in 2015.
“61per cent of investors in South Africa cite retirement as a top investment goal, far and away the most popular goal in 2015. Purchasing a new home (37%), investing in/starting a business (33%), and school/university fees (33%), are the next most-frequently mentioned investment goals.”
The survey also reported that 38 per cent of investors preferring to beat the market when it’s up, 37 per cent to match market performance, and 25 per cent to lose less when the market is down.
“Regardless of investing preference, however, South African investors universally agree upon the importance of risk management.”