The poll of 254 IFAs conducted last week also found that 71 per cent believe recent strong market performance has been driven by the reallocation of money into equities from other asset classes and not new money from private investors.
According to the e-commerce services provider, the findings disprove recent talk of a return to confidence amongst private investors with 76 per cent of IFAs surveyed indicating their clients remain cautious about their asset allocation.
Thirty nine per cent of IFAs do not expect a bull run in equities before Spring 2010 and a further 36 per cent do not envisage a bull market return for another 18 months. Only a quarter of the IFAs polled expected a recovery within the year.
1st – The Exchange propositions and business development director Paul Yates says: “The FTSE has risen to its highest level since mid January, yet it is clear from this survey that talk of the ‘green shoots of recovery’ is just hot air. With investors still nervous, there isn’t new money bolstering the market as many would hope but simply existing money being reallocated.”