New research published from global financial technology company IG reveals positive sentiment from Australian investors following a 2-year pullback in investor confidence, catalysed by cost-of-living pressures that prompted many households to deplete their savings.
IG’s latest survey, the second iteration of A Trader’s Position – reveals traders are optimistic in their outlook about the Australian market – with two of three Australians (66%) predicting an increase is likely within the next six months, the highest level of confidence reported since early 2022.
Away from home, over a third of traders (44%) believe that US indices will experience the highest growth in the next 6 months.
The data also reveals that Australian traders are among the least likely to be concerned about the local economy compared to their UK, Singaporean, German and Japanese counterparts – possibly reflecting a perception that the Australian market is more resilient compared to others.
Looking ahead, the data reveals that over one-third of Australian traders (36%) plan to incorporate AI tools or algorithms into their trading strategies within the next 12 months, demonstrating a proactive shift towards leveraging advanced technologies.
The survey also highlights that the generational divide of Australians has widened in recent months in regard to AI. Despite the data revealing that 55% of Australian traders believe those who adopt AI tech will gain a competitive advantage – there has been a significant difference in AI adoption between generations. Nearly one in five Millennials are using AI in their trading, compared to less than one in eight Baby Boomers.
In keeping with this trend, Millennials are particularly optimistic regarding AI, with 69% viewing the technology as a way of securing a substantial edge, compared to only 56% of Baby Boomers.
Head of IG in Australia, Matthew Davidson, says the new research exemplifies genuine trader sentiment and is therefore a strong tool for forecasting trader confidence and behaviour change in coming months.
“This research underscores the evolving landscape of investment strategies among Australian traders as they adapt to economic factors, changes in their finances, and the opportunities presented by technological advancements,” he said.
“The valuable insights gathered through our biannual A Trader’s Position are essential for identifying the areas we can continue to extend and enhance our clients’ trading experience, ensuring they have the tools and resources to adapt and thrive in our dynamic environment.”
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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