Investment confidence buoyant
The TD Global Investor Confidence Study of 2,000 global investors found that over half (57%) of all respondents expect the global economy to fall back into recession in 2012, while nearly half (45%) expect the UK economy to either contract or show no growth.
However, both investor groups still cite equities as their primary investment choice for both income (46%) and growth (43%) and believe that equities, precious metals and commodities are the top three asset classes to invest in for both income and growth.
Stuart Welch, CEO of TD Direct Investing, said:
“UK investors have no doubt been mindful of the economic pressures being felt both in the UK and across the globe. Yet the findings of our 2012 survey demonstrate that their resilience and confidence to seek out investment opportunities, particularly in equities, remains high.”
Annemarie Jung, CEO of Internaxx Bank, a TD Company servicing international and expatriate investors, added:
“Recent economic turmoil in Greece, Italy, Spain and Ireland will no doubt have placed a heavy burden on both UK and Expat investors, demonstrating that now more than ever it is important they have the opportunity to diversify across different asset classes and international markets where they can.”
On international markets the survey reported a dramatic shift of confidence in Europe. In the 2010 survey, 47% of UK investors said they would be most likely to invest in Europe in the next 12 months. However, the latest findings show just 1% expect Europe (excluding the UK) to perform best in 2012. The figure for UK and Expat investors combined was only marginally higher at 2%.
Confidence in other parts of the world is more positive. In particular UK and expat investors share the same expectations that Asia will perform best over the next 12 months (48%), followed by the USA (16%) and Australia (9%).