Investors hold their nerve amid market volatility

Investors hold their nerve amid market volatility

Investors are holding their nerve, in spite of being concerned about the impact of current market conditions on their portfolio, Aegon research has found.

More than 60 per cent of the 650 adults surveyed by Aegon said they haven’t reduced their exposure to equities in the past three months despite a fall in the FTSE 100 and concerns about the overall impact on their investments and pension savings. 

Almost 70 per cent confirmed they were leaving their money where it was, with just 19 per cent taking action with their investments. 

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Nick Dixon, investment director at Aegon, said: "In recent weeks, we’ve seen a number of risk factors impacting global stock markets including evidence that US and China economies are slowing, Brexit uncertainty and ongoing trade wars between the US and China. Political and economic uncertainty has understandably created ongoing concern among investors. 

"However what is evident is that investors are looking through the current situation to the likely longer term impacts and good financial advice can help investors avoid any panic decisions."

About one in five of those surveyed had plans to access financial advice over the next year, while 14 per cent were reassessing their portfolio in order to diversify. 

Adrian Lowcock, head of personal investing at Willis Owen, said: "The headlines of this suggest investors are being more pragmatic around the recent sell off in equity markets and able to take a longer term perspective, which would be great news.

"The recent sell-off however was a long way off the panic we have seen enter stock markets before and was more of a shift in sentiment combined with some profit taking, so investors' behaviour should be put in perspective. 

"I would also expect advised investors to be less sensitive to short term market volatility as they have an expertise on hand to help them and should be well diversified ahead of any volatility in equity markets that they will be well protected."

He added: "There is an assumption that investors are facing very uncertain times, whilst not looking to reduce the significance of Brexit, this has been the case for investors over the last decade.  

"The current uncertainty has different headlines, but the effects are no different on investors who have become used to climbing a wall of worry – those that have done so were well rewarded. At the moment the economic data suggests slowing growth but not an end to growth."