MARKET OPTIMISM RISING AMONGST UK INVESTORS
(21 March 2006)
investors are more optimistic about stock market returns this year,
according to new research from Barclays Wealth Management. Investment
protection, however, is a key concern, especially as the most popular
reason for saving is retirement. As a rule, the over-50s are the
most upbeat about market performance, with 16 per cent more optimistic
than in 2005, and a further 35 per cent stating they are just as
optimistic as they were a year ago.
existing investors, this number is significantly higher, with almost
three quarters (70 per cent) saying they are as confident or more
confident in the market than last year. The majority of people questioned
(67 per cent) are also very concerned about protecting the capital
in their investments a quarter (25 per cent) said they are
more concerned about this than seeking to achieve above average
despite this buoyancy, over half of adults in this country arent
currently taking advantage of ISAs as a tax efficient way of saving.
55 per cent of adults say they currently do not invest in these
products, and only 24 per cent of current investors say they are
planning on taking out an ISA before the end of this tax year.
Mendel, Director, Barclays Wealth Management says: It is encouraging
that investors are more optimistic about stock market returns but
many people are still not sufficiently encouraged to save into an
ISA. The majority of potential investors are more concerned with
protecting their capital than achieving above average returns. This
does not mean that they should steer away from investing in the
stock market, as there are a number of structured products out there
which link stock market growth with protection of the original investment.
Investors should be aware however that investing in structured products
means that they forgo dividend income.
findings reveal that nearly three quarters (71 per cent) of adults
in this country describe themselves as inexperienced when it comes
to investing, and this number rises in Scotland (77 per cent) and
amongst women (78 per cent). Even half of existing investors consider
themselves to be inexperienced.
the people planning to invest in an ISA this tax year, three-quarters
plan to do so using a cash ISA (a slightly more popular option with
women - 75 per cent vs 69 per cent) with just one-fifth (19 per
cent) intending to take out an equity ISA. Interestingly, the most
popular purpose for which ISA money is earmarked is for pension
planning with two-fifths (37 per cent) using their ISA to save for
discovered that the most savvy investors seem to be the over 50s
at Barclays 58 per cent of our ISA holders are in this age
bracket. If you look at the percentage of people that are thinking
about getting an ISA before the 6 April deadline, there are more
over-50s than any other section of the population. It may just be
a case of experience creating confidence, but with the wide range
of structured products on the market, now is as good a time as any
for the more cautious investor to dip their toe into stock market