Talking Point  

Advisers sticking with equities despite market uncertainty

Advisers sticking with equities despite market uncertainty

A clear majority of advisers are intending to retain their present level of exposure to equity markets, despite uncertainties around the economic environment and exit from the pandemic, according to the latest FTAdviser poll.

The poll, which was conducted via the FTAdviser Twitter account, found that 60 per cent of respondents intend to keep their present level of equity exposure, while just over a third (34 per cent) intend to increase equity exposure from here. 

The poll was coming during a turbulent time in equity markets, with concerns around monetary policy, inflation turning to stagflation, and the prospect of interest rates rising.

In addition, October is traditionally a volatile month in equity markets. But as the month wore on, the volatility has been confined to a small number of sectors seen as particularly vulnerable to policy changes. 

The initial market wobble related to the potential collapse of the Chinese property company Evergrande has also faded from the markets' memory. 

Investors have been increasingly wary of the outlook for growth equities in areas such as big tech and consumer durables, but there has been some element of recovery in these areas, with, for example, the Scottish Mortgage Investment Trust trading at a higher level today (October 25) than it was a month ago. 

Among the value equities, the easing of concern around the outlook for Chinese equities has boosted the shares of mining companies. 

david.thorpe@ft.com