Its latest Investor Sentiment Index found that sentiment towards UK shares has rebounded after having fallen in September, making it the second most popular investment class after UK property.
The improving economic outlook in the UK and Eurozone is the main reason for improved sentiment, says Lloyds which reported ‘bullish’ investment in Japanese shares, then UK and Eurozone shares equally.
US shares were the only investment class not to rise in October, owing to the uncertainty in the US stock market.
Ashish Misra, head of investment policy for Lloyds Bank Private Banking said: “Positive shifts in other markets have a major impact on the UK stock market.”
Table: Investor net sentiment for major asset classes
| Mar 2013 | Apr 2013 | May 2013 | Jun 2013 | July 2013 | Aug 2013 | Sep 2013 | Oct 2013 |
UK property | +9 | +8 | +18 | +25 | +32 | +36 | +42 | +49 |
UK shares | +16 | +11 | +17 | +23 | +19 | +27 | +24 | +29 |
Gold | +36 | +46 | +3 | +11 | +12 | +19 | +21 | +22 |
Emerging market shares | +21 | +19 | +24 | +23 | +14 | +16 | +9 | +17 |
Commodities | +13 | +12 | +8 | +6 | +8 | +15 | +11 | +17 |
US shares | +5 | +7 | +10 | +13 | +6 | +17 | +9 | +9 |
UK Corp bonds | -6 | -4 | +1 | -2 | -5 | +1 | +4 | +4 |
Japanese shares | -1 | +1 | +1 | 0 | -1 | +4 | -6 | +5 |
UK Gov't bonds | -11 | -8 | -7 | -4 | -7 | -2 | -3 | -1 |
Eurozone shares | -36 | -59 | -46 | -40 | -38 | -30 | -25 | -22 |
FIGURES HAVE BEEN ROUNDED TO Notes: Figures rounded up
Adviser view
Alistair Cunningham, financial planning director for Surrey-based IFA Wingate Financial Planning, said: “Eight months is a pretty short time.
“Notwithstanding that, there are positive indicators out there, but my big concern is the potential rise in unsophisticated investors in the market, fleeing cash in favour of equities. Things like the Royal Mail flotation don’t actually help that.”
