Survey: Investors fear inflation more than conflict

Inflation remains the most powerful worry and the highest risk in the next 3 months for Romanian investors, while 70% of them consider than the central bank will increase interest rates this year, according to an opinion poll made by an investment platform.   On the other hand, despite the intensification of threats in the area, fewer Romanian investors fear an international conflict, 24% in the latest opinion poll, compared to 26% a quarter before, a tendency contrary to the one present in the area.   “According to the eToro Retail Investor Beat survey, for Romanian investors, inflation remains the highest worry and the highest foreign risk in the net 3 months -53% (against 51% in quarter 3), followed by Romanian economy (45%) and global economy (40%). despite the intensification of threats in the area, fewer Romanian investors fear an international conflict, 24% in the latest opinion poll, against 26% a quarter before. That is a tendency contrary to the one present in the area. Polish investors fear war the most, from 19% in quarter 3, 2021 to 32% in quarter 4 last year. The Czechs fears about a possible conflict grew from 19% to 26%”, e Toro analyst Bogdan Maioreanu considered according to a press release on Tuesday.   In Romania, young investors aged under 34, are the least worried by a possible conflict in the area. The only generation whose worried about a conflict grew is the one over 55 years, the percentage reaching 275, on the rise to 26% in the last quarter. As for Romanian economy, 81% of investors who declared they are confident in their jobs and 77% were trustworthy in incomes and living conditions. However, 74% of Romanians do not trust the future evolution of local economy. Concerning anti-inflation measures, 70% of respondents think Romania's National Bank will continue to increase interest rates in 2022. In order to prepare for that, 28% declared they paid their debts, 22% saved more and 19% bought more cryptographic shares. 22% took no measures to protect from such an event.   In 2022, 39% intend to invest more, while 37% will invest the same amount as in 2021. The field in which more Romanians plan to invest this year is that of crypto shares , 51% declaring that they intend to have that instrument in the portfolio, against 49% a quarter before. Two thirds of Romanian investors (66%) consider that Bitcoin will be the best option for investments in the next 3 months, followed by Ethereum (40%) and Litecoin (23%).   Last year, the best 5 crypto shares bought by Romanians on eToro website were Cardano,Botcoin, Ethereum, Ripple and Dogecoin.   Technology remains the most interesting sector (43%), followed by energy (39%), health(35%) and rel estate (31%).   On the other hand, the American market, concentrated on technology, recorded losses last week because of fears concerning anti-inflation measures. NASDAQ suffered a correction of -10%, while international markets had superior performances, according to eToro. The profit of US shares for 10 years reached 1.9% for a short period, while the price of Brent oil got close to 90 dollars. Investors are worried that inflation will lead to the increase of interest rates, the slowing down of savings and the drop of company profits, the source pointed out.   The study was made by Opinium over November 30,2021 – December 14, 2021, on a sample of 9,000 individual investors of 12 countries, 1,000 in Great Britain, USA, Germany, France and 500 in Italy, Spain, Holland, Denmark, Australia, Poland, Romania and Czech Republic.   eToro is an investment site with multiple shares which allow people to invest in the shares they want, from goods to crypto shares. The company was set up in 2007.