Investor confidence rose slightly after hitting record low point, says ING

Investor confidence appears to be on the rise again after falling to a record low point in October. This is mainly because investors have more confidence in the value of their own investment portfolio, according to ING’s Investor Barometer monitoring service The service is a guide to gauge investor sentiment every month.

Investors are also slightly less negative about the economic situation in the Netherlands than a month ago. The same also applies to people’s personal financial situations.

ING's investor confidence indicator rose from 56 in October to 70 points in November. Last month, the gauge was at its lowest point since measurements began 20 years ago. Since then, fewer investors suffered losses compared to October. Fewer than a third of securities holders reported losses in November, compared to just under half of investors a month earlier.

Furthermore, a third of investors turned a profit in the past month with an average return of 5.7 percent. ING explains that the stock markets were on the rise again last month, especially in Europe. The AEX index in Amsterdam posted a recovery of more than 10 percent. The German Dax index rose almost 20 percent. Even so, both are running at a loss of about 10 percent this year.

As has often been the case recently, investors have the most confidence in ASML, followed by Shell and ING. Additionally, according to investors, geopolitics continues to have the most influence on the stock market. But they believe this will decrease. The global economy and inflation are also playing an important role. Meanwhile, investors are more dissatisfied with the stock market year than they were in August.

Because of the 20th anniversary of the Investor Barometer, ING also asked what had the most impact on the stock market during this period. The financial crisis of 2008 was the first to emerge from the survey. The bank said the coronavirus pandemic and purchasing power crisis ranked a distant second and third. Investors cited technological progress as the most important development on the market.