Geopolitical conflict has been ranked as the primary concern for UK retail investors over the next six months, according to IG Group’s bi-annual client sentiment survey.
The survey found that 58% of respondents placed geopolitical conflict as their primary concern.
A further 46% also highlighted recession among the factors that could negatively impact their portfolios.
See also: A year on from the fall of SVB and Credit Suisse: US and European banks are diverging
While 43% said the effect of inflation on investment performance was a continuing worry, this was a downward trend from the 58% who were concerned in the previous survey in June 2023.
The UK dipped into a technical recession at the end of 2023, with GDP falling marginally for two consecutive quarters.
While IG’s UK clients remained concerned about the state of the economy, the level of concern has reduced compared to June last year.
By sector, 28% of respondents believe energy will experience the largest growth in the next six months.
This was followed by technology hardware and equipment at 24%, with 23% eyeing opportunities in software and services.
