Investment Strategies

Investors Fear For Global Market Stability - Survey

Ainhoa Barcelona Reporter London 17 May 2013

Investors Fear For Global Market Stability - Survey

Some 85 per cent of investors are still concerned for the stability of the global market despite robust gains since the start of the year, a survey carried out by Opinium Research for social news and knowledge network, Mindful Money, has found.

The survey questioned 200 Mindful Money subscribers online, between March and April, and found the vast majority were worried about the stability and growth potential of financial markets.

“Better stock market returns since the start of the year have done little to reassure our readers that their money is safe. They are still worried that the economy could be derailed by events and that this could have a detrimental impact on markets and thus their portfolios will once again suffer. There is what has been called a ‘great disconnect’ between the stock market and the economy, with the former racing ahead while the world economic recovery is uncertain at best, with many European countries still in recession,” said John Lappin, editor of Mindful Money.

Regarding the UK market, some 70 per cent of investors showed specific apprehensions for the region. “The UK is doing a little better but inflation is stubbornly in a medium range and the prolonged period of low interest rates is also playing on investors’ and savers’ minds. In this difficult environment, investors are looking for explanations,” said Lappin.

They also showed concern for the impact of low interest rates on their savings, and 68 per cent of investors said they felt there was no safe place to keep their cash. Despite these uncertainties, 78 per cent said they make investment decisions on their own, without the help of a financial advisor. 

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