View more on these topics

War fears keep investors out of the markets

Fears over war with Iraq and job insecurity are the primary factors deterring more than a third of investors from re-entering stockmarkets, according to the AITC.

Research by the AITC has found that 15 per cent of investors would be tempted back into the markets if the threat of war with Iraq were to recede while 19 per cent would feel more confident of investing if their job security improved.

However, the research of 2,000 UK investors also found that 27 per cent of respondents feel more optimistic about committing new money to the markets than at any other time during the past 12 months despite increased volatility.

Eleven per cent of respondents said they would be encouraged to reinvest by financial advice while 9 per cent admitted they are waiting for the FTSE 100 index to break the 5,000 barrier before considering dipping their toe in the water again.

But just 4 per cent said they were seeking signs of improvements in company reporting before they re-invest, dispelling fears that the Enron and WorldCom scandals have been among the main factors denting investor confidence.

Director general Daniel Godfrey says: “Investors have been waiting for a long time for a silver lining to emerge from the gloom cast by volatile markets and it is encouraging to see that confidence is starting to return. The message is clearly getting through that equity investment is for the medium and long term.”

Regency Financial Management partner Bryn Walker says: “When the threat of gunfire is around I cannot blame investors for wanting to wait and see. But, as with job insecurity, you have to bite the bullet at some point and start investing again.”


Buyers get off the ladder to find a lifestyle

The traditional idea of the property ladder is losing its place in the UK psyche, with people striving to reach an ideal lifestyle rather than a specific size of property, according to Woolwich.Forty-nine per cent of Britons see living in a desirable area as the most important goal for the future, which is almost twice […]

AMP adds standalone critical illness cover

AMP Pearl has added standalone critical illness cover to its product range for the first time in a move to expand the products sold through its direct sales force operations.The product will not be available to IFAs but will be distributed through AMP Financial Planners, Insurance & Mortgage Consultants and self-employed networks.It will include cover […]

MVRs illustrate all the defects of with-profits concept

In Inside Edge (Money Marketing, August 29),Peter Dornan seeks to justify the application of MVRs by the claim that “the MVR is only part of the overall with-profits mechanism, and should not be viewed in isolation”.But it is the product providers who are viewing the MVR in isolation, to the detriment of policyholders.What happened to […]

Sarasin creates income portfolio

SARASIN SARASIN CI INCOME PORTFOLIO Type: Unit trust Aim: Income by investing in bonds, equities and cash Minimum investment: Lump sum £2,500, monthly £100 Place of registration: Guernsey Investment split: Bonds 70%, equities 20%, cash 10% Yield: 4.5-5% Isa link: No Charges: Initial 4%, annual 1.25% Commission: Initial 3%, renewal subject to negotiation Tel: 020 […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm