Over the past six months, marked by Russia’s invasion of Ukraine, soaring energy prices and record inflation, 41% of Belgian investors have purchased shares or equity funds, emerges from the latest monthly barometer from ING, published on Friday. No less than 39% regret it.
Although considered long-term by Belgians (minimum five years, or between one and five years), investment decisions are subject to the vagaries of the recent past. Thus, three out of ten respondents consider that, to take the plunge, the price of an investment must have increased during the past year, while 28% do not conclude this investment if its value has fallen during this period.
This conviction is even stronger among female investors (33%) and among French speakers (41%). However, the sharp downward correction in stock markets in the first half of the year could be used by investors as an entry point, ING believes.
Indeed, half of the respondents indicated that a 15% drop in the stock market was a good opportunity to buy. However, the appetite for risk seems to be diminishing at the moment: 59% of investors say they are not ready to take any risk with their savings today. “Belgian investors know that the long term is important, which does not prevent them from also letting themselves be guided by recent price movements and their emotions when making buying decisions.“, notes Peter Vanden Houte, chief economist at ING Belgium.
Generally speaking and for the sixth consecutive month, the investor barometer remained in July (72 points) well below its neutral level (100 points), indicating an ambient pessimism. Unusually, French-speakers were nevertheless much more optimistic (82 points) than Dutch-speakers (66 points), notes the bank-insurer. “This is probably because riskier investments, such as stocks, are more common among Dutch speakers.”conclusion M. Vanden Houte.