You are here: Home - Investing - Experienced Investor - News -

Investor confidence rises for third month in a row

0
Written by: Adam Lewis
10/02/2017
Investor confidence rose for the third month in a row, with investors most bullish about the prospects for US shares, according to Hargreaves Lansdown.

Having hit a record low of 59 points in October, the Hargreaves Lansdown Investor Confidence Index now stands at 80 points, after three months of gains. However it still remains some way off the long-term average of 100.

In terms of regions, with a confidence score of 68% DIY investors had most confidence in the prospects for US stocks, with Asia Pacific coming a close second with a score of 65%.

Hargreaves notes both these markets have markedly different backdrops, with the US stockmarket coming from a period of relative strength, and the Asia Pacific market coming from a period of relative weakness, in valuation terms.

Investors are least confident about the prospects for Europe, which has a confidence score of 51%. (A score above 50% shows positive sentiment, below 50% shows negative sentiment).

While Investor confidence is gradually edging up, Laith Khalaf, a senior analyst at Hargreaves Lansdown, noted there remains “a lot of caution in the air”.

“That’s understandable, as a number of dramas are unfolding this year, including elections across Europe, the evolution of the Trump presidency, and of course the start of the UK’s withdrawal from the EU,” he added.

Despite these concerns Khalaf said the long term investor should still have a “healthy slug of equities” in their portfolio to generate real returns, particularly with a bout of inflation on its way.

He said: “Cash returns remain woeful, and indeed NS&I just announced further interest rate cuts to four of their variable rate products, so there is little sign of this situation materially improving.

“Bond yields have picked up since their low in August, following the Brexit vote, however they still carry a fair degree of risk in exchange for a pretty limited return.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week