View more on these topics

Investors expect prolonged downturn

Investors are braced for the global downturn to last another two to five years, according to a survey by F&C.

On March 6 the group surveyed 786 self-directed private investors in investment trusts.

The responses showed almost nine out of 10 investors expect a recovery in the global economy and financial markets in the next five years. Only 11% predict a recovery within one year, but 37% expect a recovery in two years and 39% in three to five years.

Despite this pessimism, the vast majority of respondents (94%) said they would not be selling their investments because of market conditions, and 60% said this is a good time to invest in equities.

In contrast, 8% said this is a bad time to buy equities. One-third (32%) of investors said they did not know, which F&C says reflects uncertainty in the market.

However, many investors have reduced their expenditure as a result of the credit crisis.

The survey found 47% of investors had cut their spending, but half said economic conditions had not had any effect on their spending.

Asked what they would do with their investment contributions, 58% said they would remain the same, 23% said they would invest less, or less frequently, and 19% planned to increase their contributions.

The survey also questioned people on their attitudes to the British government’s intervention in financial markets. Over half (54%) were broadly supportive of the fiscal stimulus measures, while 29% said more should be done and 17% said less intervention was needed.

Recommended

Precious metals see unprecedented boom

ETF Securities, the exchange-traded funds provider, says that its precious metals exchange-traded commodities (ETCs) surged by 400% in the first quarter of this year, breaking the company’s previous records. Precious metal prices rose in tandem with increased interest from investors.Physical metal ETCs proved especially popular. They are backed 100% by allocated metal in a vault, […]

Light in the East

It is to be expected that markets run out of puff during a holiday period. The whole basis of sell in May and go away is predicated on wealthy landowners, who owned the bulk of shares in days of yore, closing up their London houses and retiring to the country for the season. Easter may not be quite such a vacational imperative but the streets of the City are undoubtedly quieter and it is not just the recession.

Henderson to look at emerging funds

Henderson chief executive Andrew Formica says the firm is looking at emerging market equities as one of a number of potential additions to its range following the New Star deal.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment