“If we had experienced a more prolonged drop - such as in the financial crisis - I would expect more investors to be increasingly cautious,” he said. “Capacity for loss is a vital factor.
“Those who have lower overall assets have generally been those who have become more risk averse. They have been reassessing their priorities, such as considering retiring earlier than planned and wanting to protect what they have. Or they’ve had to tighten their belts and are expecting this to continue as cost pressures and inflation increase.”
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