2022 thus far has given ASX investors many challenges. For starters, the S&P/ASX 200 Index (ASX: XJO) has had a pretty tough year until now. We may have seen the ASX 200 rally a healthy 9.2% since 20 June.
But the index is still down by a hefty 7.4% year to date. It's also gone backwards by a similar amount over the past 12 months.
It's not hard to see that most investor concerns have revolved around rising inflation, and a corresponding ratcheting-up of global interest rates. Not to mention the fears of a looming recession as a result.
So with all of this going on, one might assume that ASX investors' confidence in the markets has taken a hit. But that is not entirely the case if new research from Syfe is to be believed.
Syfe, a digital investment platform, has just released its Syfe Investor Pulse 2022 research.
According to the research, 58% of investor respondents "remain confident they will still achieve their [investing] goals", although 40% said this might not occur within the initially-planned timeframe.
Further, 66% of those surveyed stated that they are adopting a "longer-term, passive approach". In contrast, just 7% of those surveyed are considering selling their investments.
Interestingly, 16% of respondents stated they are "looking to add more defensive assets such as bonds". In contrast, 12% said they plan to "invest in more aggressive, high-risk assets".
ASX investors remain confident in crypto, ETFs…
This could include cryptocurrencies like Bitcoin (CRYPTO: BTC). Though 41% of respondents are already invested in cryptocurrencies like Bitcoin. In fact, cryptos are now "on par with property as a future investment vehicle," according to the research.
It also finds that demand for crypto, international shares, and exchange-traded funds (ETFs) is "outpacing more traditional investments".
But a long-term investing mindset is also on the rise. Syfe found that 74% of respondents are investing for a time horizon of up to 10 years. And 51% of respondents only entered the markets in the past five years.
Here's some of what general manager for Syfe Australia, Tim Wallace, had to say on these findings:
While the prevailing wisdom is that the market is saturated and that economic indicators are dampening investor sentiment, the research results reinforce our belief that Australian investors are resilient and firmly focused on financial security.
They are seeking to grow their knowledge and tap into diversified investment offerings like international shares and crypto in order to build for the longer-term.
An interesting insight into ASX investors right now. Hopefully, this confidence pays off, but we'll have to see what the rest of 2022 brings us.
