A survey from Wealth Club finds that 52 per cent of high net worth investors polled believe leaving Europe is the biggest threat to wealth.
A survey from Wealth Club finds that 52 per cent of high net worth investors polled believe leaving Europe is the biggest threat to wealth. When asked to explain, many of their respondents cited an expected fall in the FTSE and a fall in Sterling.
Ben Yearsley, Investment Director, Wealth Club says: “With politicians on both sides of the Brexit debate fudging the figures to suit their own argument, investors are being left to wade through the hyperbole and make their own analysis of what the implications are of the referendum outcome. It is clear the markets are nervous with the FTSE 100 falling 2.4 per cent last week and Sterling falling 1.9 per cent against the dollar and 0.9 per cent versus the Euro.
“More worryingly for the investment industry, 50 per cent of high net worth investors have put off making any new investment decisions with a further 20 per cent either selling or investing less than usual. As well as investing less, many have been moving their assets out of sterling to counter any sharp fall in the currency in the event of a vote to leave.
“It is clear that the Brexit debate is damaging investor confidence. Stockmarkets have slipped back in recent weeks and in the currency markets sterling is having a bumpier than usual ride. Over the last month Sterling is flat against the Euro and the US dollar, however that masks big swings, largely dependent on the latest opinion polls. The sooner the vote is out of the way, the sooner normality can return and investors can plan their long term investments.”
Other reasons high net worth investors gave to explain their responses included:
Leaving is biggest threat to wealth
Exports and corporate profits falling
The UK having a lower credit rating, pushing up debt servicing costs
Leaving a large free trade zone makes no sense
House prices may fall
Too many uncertainties
Staying is biggest threat to wealth
Low growth rate is due to inflexibility of EU economies
Too much regulation and mismanagement
Undemocratic politicians who are anti commercial
UK better off growing trade with the rest of the world and not the EU
Europe is bankrupt