Data shows concerns of DIY investors while global risk report reveals what could cause problems in the months ahead
Self-directed investors are worried about the outlook for the global economy according to a new report.
The weak sentiment is driven by a growing concern over inflation, although international conflict is considered a major external risk according to respondents in North America and Europe.
The Retail Investor Beat from social investment network eToro also found that US investors are most bullish on the outlook for markets in 2022 with one third expecting a rally.
Globally - and despite the pessimistic view of the economy - investors are also confident that the slowing economic recovery will not hit their investments, the data shows with 80% saying that they were confident about how their portfolios will perform.
Risks ahead
While inflation remains a top concern, a survey from insurer Allianz Global Corporate & Specialty ranks cyber incidents as the biggest risk ahead.
The firm’s poll of experts including CEOs, risk managers, brokers, and insurers across 89 countries and territories, has cyber incidents (44%) just ahead of business interruption (42%) and natural catastrophes (25%).
“’Business interrupted’ will likely remain the key underlying risk theme in 2022,” said AGCS CEO Joachim Mueller. “For most companies the biggest fear is not being able to produce their products or deliver their services. 2021 saw unprecedented levels of disruption, caused by various triggers. Crippling cyber-attacks, the supply chain impact from many climate change-related weather events, as well as pandemic-related manufacturing problems and transport bottlenecks wreaked havoc.”
Those businesses that are better prepared and more resilient to business disruption may offer lower risk to investors. However, the pandemic, although relegated to fourth place in the risk index, is still a potential issue for businesses.
“This year only promises a gradual easing of the situation, although further Covid-related problems cannot be ruled out,” said Mueller. “Building resilience against the many causes of business interruption is increasingly becoming a competitive advantage for companies.”
