The success of the vaccine rollout and lifting of lockdown rules have increased the optimism of UK investors, new research conducted on behalf of HYCM has found.
The success of the vaccine rollout and lifting of lockdown rules have increased the optimism of UK investors, new research conducted on behalf of HYCM has found.
The trading broker commissioned an independent survey of 735 UK-based investors, all of whom have investments in excess of GBP20,000, excluding their property, savings and workplace pensions. It found that 41 per cent are confident the vaccine rollout will benefit their investment portfolios.
The same number (41 per cent) believe the easing of social distancing rules will provide a boost to their investments.
More than a fifth (22 per cent) of investors consider Joe Biden’s presidency to be positive news for their portfolios, compared to 8 per cent who think it will harm their finances.
Conversely, 36 per cent think that the ongoing Covid-19 pandemic will reduce the value of their investments, while just 11 per cent believe they will profit from it. A third (33 per cent) say Brexit will harm their investments.
Elsewhere, HYCM’s research also explored the assets, products and markets that investors are intending to back in the coming year. Cashing savings were the most popular – 33 per cent plan to invest money in savings in the next 12 months.
Stocks and shares (22 per cent), property (14 per cent), bonds and ESG investments (both 11 per cent) were the next most popular options. One in twelve (8 per cent) plan to invest in cryptocurrencies.
Giles Coghlan, Chief Currency Analyst, HYCM, says: “The success of the vaccine rollout is clearly having a significant influence on investors’ mindsets. In allowing lockdown rules to be lifted and the UK economy to spark back into life, the speed of the vaccine programme should also mean that investors – like consumers – become more active in the months to come.
“Meanwhile, it is interesting to see that many investors remain wary of how Brexit could affect their savings and investments. While a no-deal outcome was avoided, a large number of investors still fear a tail risk to their assets. It will likely take time for these concerns to subside.
“In terms of asset classes, UK investors can clearly see the property bubble forming, not just in the UK but around the world – property prices globally have been spurred on by low interest rates. It makes sense that cash savings remain popular given the uncertainty that still lingers overhead, while bonds are evidently also being considered by many. If central banks start tapering, bond yields will become more attractive, and this should see some UK investors moving into bonds from equities.”
