Investment confidence is rising, with almost half of UK investors expecting the stockmarket to climb in the next 12 months, says Threadneedle.
Its annual survey of 2,000 investors found 49 per cent believe the stockmarket will rise in the next year compared with 32 per cent in 2001 and 40 per cent in 2000.
Over the medium term, there has been a increase in investors expecting positive returns, with 57 per cent anticipating a rise in the stockmarket over the next three years, up from 50 per cent last year and 46 per cent in 2000.
Despite the growing optimism, investors are lowering their forecasts on the size of any increase. Those expecting a rise are now looking for an average return of 6.7 per cent, compared with 9.6 per cent 12 months ago return and 11.6 per cent in 2000.
Head of distribution David Sachon says: “In the UK, it seems that many investors realise that the more the market falls, the better the chances that it will rise. We believe this reflects the relatively long history of retail investors in the UK using equity funds and so becoming more accustomed to volatility.”