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Investor confidence is continuing to rise

Private investors felt more positive about markets in December than for the last seven months, according to the Interactive Investor sentiment barometer.

The barometer stands at 60.8 per cent, increasing for the fourth consecutive month and up nearly 10 per cent since last August.

It works on a percentage system, where 0 represents a bear market and 100 represents a bull market.

Head of public relations Martin Campbell says the trend of monthly rises has ramifications for the wider investment community as it suggests that the markets are set to do “the right things” over the next few months.

Results show that the Far East excluding Japan is still the most popular region for inv-estment, with 24 per cent of respondents believing it offers the best prospects over the next year. Emerging markets follow with 23 per cent and UK equities with 14 per cent.

Energy and mining is still the most popular sector for growth over the next year, with 17 per cent.

Drugs and healthcare is the sector that shows the biggest movement, rising by 5 per cent to 16 per cent from 11 per cent last month.

Campbell says: “The barometer results should raise a few eyebrows among the IFA community. The results are generalised but they suggest that the next few months should be a good time for investing.

“We are also seeing that the number of share traders who are net buyers is continuing to climb.It has now risen in each of the last six months.”

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