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Investors warm to ‘better performing-but riskier-assets’

Lucinda Beeman
Written By:
Lucinda Beeman
Posted:
Updated:
12/03/2014

Investor sentiment has been strongest towards UK property and equity over the last year, according to a Lloyds survey, while traditionally ‘safe’ assets like gold have fallen in the rankings.

The Lloyd’s Bank Private Banking Sector Investor Sentiment Index, released today, found that the last 12 months saw net sentiment towards UK property and shares increase by 50 and 25 points respectively while gold fell by 20.

Ashish Misra, head of investment policy at Lloyd’s Bank Private Banking, said: “The rise in shares versus the drop in gold over the past year is very interesting. It signals that investors are actively seeking better performing-but riskier-assets. This shows a strong level of confidence in their choices.”

According to Misra, the rankings demonstrate that the average private investor is becoming more sophisticated and knowledgeable. He said: “With that in mind, it will be interesting to see how the current crisis in Ukraine will affect investors’ sentiment towards eurozone shares.”

Eurozone shares are ranked below all asset classes at -14 percent. However, a swing of 22 points from March 2013 to March 2014 makes this asset class the third best performer in terms of absolute shifts in positive percentage increase since the index launched.

Sentiment towards emerging market shares decreased three points from this time last year, partially reflecting concerns about Argentina and China which triggered a 5 point drop in February.