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Retail investors &#39nervous&#39 over market stability

Investors remain cautious about the prospects for investing in the stockmarket and only a minority are optimistic that the present market conditions will improve.

A report, Investing During Uncertain times, researched on behalf of UK financial institutions by financial services consulting group NMG, shows retail investors are losing confidence rather than gaining belief in the markets, with 30 per cent disagreeing that the industry is capable of surviving a downturn.

Half of those surveyed said they are more cautious than 12 months ago while only one in four investors expect to increase their investments over the next year. Men and the under-44s have more confidence in markets improving and UK equities were seen as the best short-term investment. Only 36 per cent of those questioned are likely to consider equity-based investments in the next six months.

NMG conducted 207 interviews across England in January among consumers who invested in the stockmarket last year.

Director David Burns says: “Investors are holding tight and are waiting to see which way the markets move next. In spite of the poor returns from the stockmarket over the past two years, they do not appear to have been put off investing in equities long term.

“But there is a lesson for financial services providers here – investors are starting to get nervous about the long-term stability of the industry. Against this backdrop, we expect the well known brands to do best.”

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