Key points
- ASX shares are down in 2022 but retail investors remain committed
- The Aussie economy is seen as a potential risk to investment outlooks
- Healthcare shares are believed to set to outperform
ASX shares have struggled so far in the new year.
Since the opening bell on 4 January, the All Ordinaries Index (ASX: XAO) is down 8.1%.
In the face of rising interest rates, ASX tech shares have fared even worse, as witnessed by the 17.1% year-to-date drop in the S&P/ASX All Technology Index (ASX: XTX). And that's after factoring in today's 2.9% gain.
With ASX shares under pressure, we look at what Aussie investors are planning as per the results from global multi-asset investment platform eToro's latest global Retail Investor Beat report.
ASX shares preferred to global shares
e-Toro surveyed its global pool of investors.
For the purposes of this article, with our focus on ASX shares, we'll stick to the answers provided by Aussie investors.
With that said, 51% of Aussie respondents said they want control over their own investments rather than relying on Robo advisors or professional advisors.
While 28% of respondents are invested in global stocks, fully 66% are invested in ASX shares. That figure is higher among the older age groups.
Cryptocurrencies are also rising on investors' radars, with 24% saying they intend to invest in crypto in the year ahead. That rises to 50% for the 18 to 34-year-old age group and falls to a meagre 6% for those 55 and over.
ASX tech shares, healthcare, Bitcoin and dividends…
Asked which sectors should see the best performing ASX shares in the first quarter of 2022, 36% believed healthcare stocks will present the best investment buying opportunities. That was followed closely by tech shares, with 35% saying those will offer up the best opportunities over the next 3 months.
Despite recent pullbacks, or perhaps because of them, many respondents were also bullish on their outlook for Bitcoin (CRYPTO:BTC). Overall, 30% of Aussie respondents said Bitcoin was the best investment buying opportunity over the next 3 months.
As for dividends, income investing remains very popular among the older cohort. 47% of respondents in the 55-plus age group said dividends were important in their investment decisions compared to 17% of 18 to 34-year-olds.
Ethical investing is also front and centre for many ASX share investors, with 40% of respondents overall saying they consider clean technology when making their investment decisions.
An eye on risks
Asked about the biggest risk to their ASX share holdings and other investments over the coming quarter, the state of the Australian and global economies topped the list.
46% of survey respondents named a shaky global economy as the biggest potential risk to their investments over the next 3 months. The state of the Aussie economy was a close second, with 39% saying this was the biggest risk to their investments in the first quarter.
Despite these concerns, 59% said they hadn't repositioned their holdings to protect them for these risks.
Commenting on the results, eToro's global markets strategist, Ben Laidler said:
Our latest Retail Investor Beat suggests investors are confident in their investments despite the cloudy economic outlook. Over the past two years retail investors have stolen a march in many ways over their institutional competitors and seem to be allocating their investments shrewdly with an eye on future developments.
Ultimately no one has a better handle on the situation 'on the ground' than an everyday investor who has to go to the supermarket to buy groceries or fill their car with fuel.
