Investors become cautious
More than a fifth (21%) of stock market investors have moved their money into cash and bonds over the past 3 months, research from Lloyd’s TSB has shown.
Many investors believe the stock market to be an unreliable source for investment, with more than a third (37%) saying that they have felt apprehensive about investing in the market over the past 3 months. A further 48% said they have decided to review, or have reviewed their investment portfolio, with more than a third (31%) of those having done so because of the recent media coverage surrounding the credit crunch.
The research also revealed that investors are concerned about the performance of the stock market over the coming year, with 36% saying that they are apprehensive and only 26% saying that they are confident. Of those who feel apprehensive about the market, 35% believe that the return from the FTSE over the past few years hasn’t been good and think that this trend is set to continue. Of those who are confident about next year, 64% said they are willing to ride out short-term fluctuations.
Nathan Moss, managing director, wealth management, Lloyds TSB said: “Investors have undoubtedly been rattled by the recent stock market turbulence, and the widely-reported ‘credit crunch’ has prompted many to review their investments. But, it’s important for investors to consider their own circumstances and avoid a knee-jerk reaction. By speaking to an expert and building a balanced portfolio, investors can ensure that their finances remain in good shape despite changing stock market conditions.”