According to the Westpac Melbourne Institute Index of Consumer Sentiment survey for September only 8.5% of people believed 'shares' were the wisest place for their savings.
8.5%!
Of course, bank accounts and property ranked highest with readings of 34% and 26% respectively.
Perhaps alarmingly, only 4% said 'super' was the safest place for their money.
The lack of understanding of personal finance and investing is a major problem for the average Australian who believes the sharemarket is akin to gambling.
Sure, one look at the S&P/ASX 200's (INDEXASX: XJO) 8% fall since September would reinforce that. But how about the 12% average annual return the market has achieved since 1900 which by the way turns $1 reinvested into over $395,000?
According to AMP Capital (ASX: AMP), if you invested that $1 in Australian cash or bonds your average yearly return would've been 4.8% and 5.9%, respectively. Turning your initial investment into just $214 and $727 respectively. I'd rather take the gamble.
The point is, investing in the share market should only be done for the long term but, if done well, it will be the best vehicle to drive your wealth higher.
3 excellent ASX companies to buy right now
The recent batch of market volatility has only served to sweeten the investment opportunities adorning the ASX. For example Australia's biggest listed law firm, Slater & Gordon Limited (ASX: SGH) has fallen 7.5% in value since September 1 despite a fantastic earnings result and great outlook for the near and long terms.
Down 4% over the same period, Ozforex Group Ltd (ASX: OFX) is another great company trading at a discount to its fair value. The $560 million foreign exchange provider has only recently listed on the market but holds exceptional promise.
Lastly, Cooper Basin oil and gas producer Senex Energy Ltd (ASX: SXY) has dropped 25% in the past six months as its FY14 profit result appeared to disappoint myopic investors. However its level of 2P reserves is growing quickly and bodes well for the company's production goal of between 3mmboe to 5mmboe by 2018.
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