Fraser Allan

Australian investors and traders remain nervous about markets but are continuing to invest and trade through uncertainty, maintaining exposure despite rising caution and concerns over mounting macro headwinds, according to new research from global online multi asset provider, CMC.

CMC surveyed more than 8,500 Australian investors and traders, finding that ongoing global uncertainty had led more than half (56.1%) of all respondents to become more cautious. However, almost nine in ten (87.1%) said they planned to invest the same, or even more, over the next six months.

Among those who were more cautious, one third (31.8%) of the respondents said they plan to invest or trade more in the next six months, while only 12.8% plan to invest or trade less.

Commenting on the findings, Fraser Allan, Head of Premium Client Management at CMC, said nervousness was reflected in mindset not allocations, with investors and traders choosing to stay the course despite ongoing uncertainty and volatility.

“This is a story of calibration, not capitulation. Investors and trades are acknowledging the risks and adopting a more considered mindset, but uncertainty has not driven them away from markets,” Mr Allan said. “Rather than stepping back, they appear to be reassessing how and where they participate, a measured response that reflects neither complacency nor retreat.

“That’s a meaningful shift from what could be expected, given that uncertainty has in the past led some retail investors and traders to flee to cash. This time, some investors and traders are staying in the market and adjusting how they participate.”

Cash, not conviction, is the handbrake

Asked what is most preventing them from investing more, respondents pointed at their own bank balance rather than geopolitics or volatility.

A lack of available cash was the single biggest barrier to investing (53.3%), outweighing volatility (18.5%), knowledge gaps (11.7%), geopolitical tensions (10.2%), and fear of losses (6.3%) combined.

“The headlines are geopolitics and volatility, and those things are real,” said Mr Allan. “But when we ask respondents what’s actually holding them back, one in two say it’s simply that they don’t have the spare cash. Fear of losing money comes in at just six per cent.”

AI has moved into the mainstream of retail investing

Nearly half of investors and traders surveyed (48.6%) now use AI tools to support investment decisions, with 33.1% using it occasionally and 15.6% regularly.

From the survey results, investors and traders are using it across the investment spectrum, including researching companies (21.0%), learning/education (19.7%), market analysis (17.7%), and generating trade ideas (11.4%). However, trust has not kept pace. Fewer than a third (29.4%) say they trust AI-generated market insights.

The survey shows investors and traders who have adopted AI look markedly different from those who selected “not using”. Regular AI users are:

• Nearly twice as likely to be planning to trade more over the next six months (46.4% vs 25.0% of non-users)
• More bullish on markets (42.0% bullish or somewhat bullish, vs 26.7%)
• More confident in their own decisions (10.0% “very confident”, vs 6.8%)
• More globally exposed (29.2% increased US equity exposure, vs 15.1%)

“AI has arrived in retail investing faster than almost anyone expected,” said Mr Allan. “Those using AI are more active and more confident as they have the information that matters, cutting through the noise and abundance of information.

“It is providing a new resource to help support investors and traders for decision-making. However, a trust gap remains, with less than a third of respondents saying they trust what comes back. It seems investors and traders are still rightly questioning the outputs that AI delivers.”

The rise and rise of ETFs

ETFs were the most common way investors and traders who participated in the survey said they had added exposure in response to recent volatility. Nearly half (47.6%) increased their investment or exposure to index funds and ETFs, ahead of Australian equities (37.5%), US equities (21.0%), commodities (7.8%), and crypto (4.7%).

Looking forward, ETFs again led expectations for the best-performing asset class over the next six months (29.0%), ahead of US equities (21.3%), global equities (16.0%), Australian equities (15.7%), commodities (13.8%), crypto (3.3%), and FX (1.0%).

The findings echo CMC Invest’s 2026 H1 Inside Invest Report which identified the emergence of a “Big Four” ETFs (IVV, VGS, VAS and NDQ) accounting for approximately 75% of top-10 orders, with investors using ETFs as a route to US and global exposure.

“The index has become the default,” said Mr Allan. “When investors and traders are uncertain, they’re not going to cash and they’re not stock-picking their way out of it. They’re buying the market and getting diversified exposure to local and international markets through a handful of very large, very liquid ETFs.”

A market waiting for a catalyst

The survey reveals the largest group of respondents have no firm view on where markets will go next.

Uncertainty remains the key theme among investors and traders with four in ten (40.4%) neutral on the six-month outlook for markets, outnumbering both bulls (34.1%) and bears (25.5%).

Sentiment translates almost directly into intent. Among investors and traders who are bullish or somewhat bullish, 47.6% plan to invest or trade more, compared with 21.6% of those who are bearish or somewhat bearish.

“The biggest block in the market right now isn’t the bulls or the bears, it’s the undecided,” said Mr Allan. “That tells you this is a market waiting for a catalyst rather than one positioning for a direction. When that catalyst comes, whether it’s rates, earnings, or geopolitics, there’s a very large group of investors ready to move quickly.”

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Luc Pettett

CMC Invest, Australia’s largest non-bank share trading platform, has partnered with Telescope AI to launch a dedicated AI engine, CMC Intelligence, helping investors navigate market movements and review portfolios based on the latest market insights.

CMC Intelligence provides AI powered portfolio-and instrument-level insights across stocks, ETFs, and cryptocurrencies on several key markets, including Australia, the United States, Singapore, New Zealand, and the United Kingdom, helping investors understand top market drivers.

It transforms raw market data into clear, relevant insights by prioritising information based on what clients are invested in. It surfaces key price movements, news, and events ranked by relevance, helping investors focus on what matters most to their portfolio.

Ryan O’Doherty, Head of Product for CMC Invest APAC, said the world is moving fast, markets are shifting constantly, and AI is proving to be a gamechanger that has the potential to help all investors, whether they are actively trading, re-engaging with markets, or preparing to place their first trade.

“CMC Intelligence addresses a common challenge for investors: maintaining clarity and confidence in fastmoving or volatile markets, which often requires monitoring fragmented and conflicting information across multiple sources,” said Mr O’Doherty.

“AI-enabled solutions shift the focus to synthesis, helping clients cut through market noise by transforming complex market research and trade analysis into insights that are easier to understand, quicker to act on, and more relevant to real trading decisions.”

The launch of CMC Intelligence comes as AI adoption for investing accelerates. Research shows 23 percent of CMC Invest clients now use AI for investing, up from 12 percent six months ago^[1].

“By consolidating and explaining relevant information in one place, CMC Intelligence effectively helps investors cut through complexity and make informed investment decisions in a world that is changing fast.”

The future of investing

CMC Intelligence analyses each underlying asset using specialised research capabilities tailored by asset type and region. For example, with Australian ETFs, CMC Intelligence identifies top-weighted constituents and monitors earnings, announcements, and market-relevant developments using authoritative sources.

At a portfolio level, it brings together signals across holdings to highlight what is most relevant right now. Investors can then drill into individual instruments to see the specific announcements, earnings, macro factors, or company events that are likely to drive each movement, with direct links to original sources such as corporate filings, regulatory announcements, and verified news.

Insights are generated by dedicated AI research agents using verified market data, corporate filings, regulatory disclosures, and public news sources. Each agent is specialised by asset class, understanding the specific data sources and drivers that matter, and cross-validates findings with clear source citations, allowing investors to validate information and continue their own research directly from the original filings and announcements.

“Working closely with CMC’s team to bring this to market has been exceptional,” said Luc Pettett, CEO of Telescope AI. “They understood that AI isn’t a feature add-on, it’s infrastructure that changes how investors engage with capital markets and ultimately empowers the investor.”

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Notes:
[1] Investment Trends 2025 H2 Australian Online Investing Report

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