Thus, UK investors are also bracing for a recession before the end of the year, as a new survey of 885 UK-based retail investors commissioned by HYCM shared with Finbold shows. The study showed: that 62% of investors believe that the UK will enter a recession before year-end. Namely, the survey showed how retail investors manage their portfolios with high inflation, low growth, recession risks, and Conservative leadership contests piling on possible headwinds for the broader markets. It also revealed that 50% are concerned that interest rate hikes will not tame inflation; that investors plan to decrease their holdings in crypto, classic cars, and private equity compared to Q1; and that stocks and gold are the most popular assets to invest in.
Headwinds abound
Giles Coghlan, Chief Currency Analyst, HYCM, said that the Conservative leadership contest is currently in the limelight with the greatest focus on economic policy as the fight for the PM position continues. However, the discrepancy betweenSunak’s desire to tame inflation andTruss’ss doubts about the path chosen by the Bank of England (BoE) assures investors that a recession is inevitable. Coghlan also stated: Further adding: In the end, the risk appetite seems to be alive and kicking despite the challenging macro environment, as the study concluded that 19% of investors’ overall plan is to keep investing in stocks and shares, while interest in forex (currencies) is also stable. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
