Investor confidence in stock market seems to be waning, says study |
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Fri, 18 Nov 2005 14:05
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LONDON: Private investors' confidence in the stock market is waning, with fewer numbers of such investors now planning to make fresh investments in equities. A survey by the Association of Investment Trust Companies recently found that the percentage of people who would prefer stocks to property came down to 58 from 71 in February. Investors who would increase their investments in the share market also came down to 44 per cent from 58 per cent.
Announcing its findings, the association said the recent stock market rally had made active investors jittery than jubilant. Nearly 20 per cent of those wary of the stock market cited fragility of the economy as the reason, while 19 per cent said profits as their motive.
As much as 25 per cent of those surveyed felt property to be a costly affair, up from 20 per cent in October 2004, and 13 per cent were really concerned about a property market crash.
However, 30 per cent of the respondents still expect investment in houses to produce better returns than shares during the coming year, though the percentage is down from 40 per cent in February.
The association's communications director Annabel Brodie-Smith said the repeated warnings about a property slowdown are beginning to have an impact but many people are still banking on property prices rising.
The association feels that while the stock market's ups and downs may be off-putting, investors must be aware that equity investment should be for the long term and over periods of five to 10 years and that shares and investment trusts usually outperform bank and building society accounts.
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