What investment strategy will most investors adopt next year?
Over half - 57% - of UK-based retail investors believe that the worst of the economic turbulence from the last 18 months has passed, according to a new survey. of 964 individuals.
Some 48% of the 964 people surveyed said their investments had performed well despite economic headwinds, while 12% of the respondents said their investments performed poorly, the survey commissioned by investment platform Shojin showed.
However, despite the cautious optimism, the majority - 62% - of investors were planning to take on a low-risk investment strategy in the next 12 months.
Meanwhile, 62% were worried about how the government was handling the economy, the study found.
“It’s clear from our data that the government still has its work set out to allay the concerns of UK investors when it comes to their ability to manage the economy,” Shojin CEO Jatin Ondhia said in a statement.
Ondhia added that it was “positive to note” that many UK investors thought the UK was past the worst of the economic turbulence, saying there was “evidently confidence” that interest rates would fall in 2024.
The Shojin chief also said the fact that 48% of investors believed their investments had performed well showed that many of them had been “proactive in adapting investment portfolios” to problems which arose from high inflation and interest rates.
Ondhia believed that the coming year would “bring a little more calm and predictability” compared to the last three to four years.
“That said, investors must continue to be proactive, exploring all the different options available to them, and assessing which of those options best suit their risk appetite and long-term goals,” she said.
