Investor Fears For 2009

14 Jan

Channels: Audio, Business Finance

The flight from equities continues, with over a quarter (28%) of stock market investors saying that they have moved some or all of their money into more cautious investments.

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The flight from equities continues, with over a quarter (28%) of stock market investors saying that they have moved some or all of their money into more cautious investments, such as cash or bonds, in the past six months, according to a new report released today by Lloyds TSB Wealth Management.

The third Investor Outlook report, which tracks investor confidence on a six-monthly basis, shows a 17% increase in the number of investors who have fled from stocks and shares into “safer” bets, such as cash and bonds, when compared with November 2007’s report.

However, after a sharp drop in the average amount invested in equities in the first six months of the year (from £51,000 in November 2007 to £22,500 in July 2008), the rush from the markets seems to have stalled, with the average investor still having £23,500 in the markets.

Three in five (63%) investors say they have felt apprehensive about the stock market in the past six months. This contributed to two thirds 66% reviewing their investments in the past six months. For investors who have made changes to their portfolio of investments, over half, 58% have moved some, or all, of their money into more cautious investments such as cash or bonds. A bullish one in ten decided to play the market by putting more money into equities in the hope of profiting from a recovery.

Over half (58%) feel apprehensive about the stock market in the coming year just one in five (20%) feel confident.

Having a financial plan in place helps to improve confidence as over half 50% of people who say they have a financial plan in place feel confident about their financial futures compared with just 34% of people who don’t.


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