Investors still scared of stocks

From the SMH:

Despite the recent share market rally, Australian investors remain reluctant to move more cash into equities, a new survey has found.

The Australian Investors’ sentiment survey for November said the 523 respondents were cautiously optimistic about the stock market “but they also show little intention of allocating more cash from the sidelines into Australian or global equities”.

The survey by the Australian Investors’ Association (AIA) and FNArena showed that the average cash held in Australian investment portfolios had stabilised around 19 per cent:

• While this is down from a registered peak of 26 per cent in September 2011, the number has hardly moved throughout the present calendar year during which (global) equities proved the best performing asset class.
• Given the Australian share market rallied to its highest level in five years in November, it’s probably of little surprise that Australian investors have scaled back their optimism regarding the immediate outlook for equities with a majority retreating into Neutral sentiment.
• But even on a six to 12 months horizon, investor views appear to have grown more cautious even though a clear majority expects the share market to book further gains in the year ahead.

Thin evidence of investor appetite but supportive of my overall view.