Finder polled 1,204 South African adults in December 2021 and 39,573 adults globally to reveal South Africa is the fourth most bullish on stock and ETF performance this year out of 26 countries.
Despite the stock market falling in December, 24% of South Africans think stocks will be the best investment choice in 2022, well above the global average of 17%.
Cryptocurrency is the next most popular pick, with one in five South Africans (21%) thinking digital currencies are the best investment choice in 2022. This is followed by property and cash (19% each), NFTs (7%), and commodities and bonds (5% each).
Finder’s investment editor, Kylie Purcell, said the survey results are surprising given South Africa recently raised the interest rate, which is typically bad news for the stock market.
“The South African Reserve Bank (SARB) has raised the interest rate twice over the past few months, and is expected to raise the interest rate several more times over the next year, according to a panel of economists surveyed by Finder.
“Typically when interest rates go up, stocks don’t perform as well, which is what we’ve seen with the stock market falling in December.”
However Purcell notes South Africans are likely looking to hedge against price hikes with inflation now in the top end of the SARB’s range.
“While the stock market has dropped, South Africans are likely still interested in investing in stocks and exchange-traded funds (ETFs) as people look to hedge against any further price hikes.
“The market is still very uncertain, with fears of a crash looming ever since Omicron hit. While it’s a good idea to inflation-proof your portfolio, it’s important to maintain liquidity should you need the cash.”
You can view the full report here.