Investors have remained relatively sanguine despite geopolitical and economic uncertainty, with 83% saying they felt confident making investment decisions in volatile markets, according to M&G’s recent Investor Compass.
The new report draws on a survey of 500 UK investors and 150 financial advisers to examine how market volatility and investor behaviour influences decisions. As part of the Compass, the firm has also launched the Investor Confidence Index, with investors recording an overall confidence score of 50 out of 100.
They were most positive about their personal finances, scoring 66 out of 100.
Clive Bolton, CEO of M&G Life, said: “Our research suggests investors remain more resilient than many might expect.
“Despite continued market volatility and economic uncertainty, most remain confident about making investment decisions and focused on their long-term goals.”
Meanwhile, financial advisers were slightly less confident, marking their confidence levels at approximately 46 out of 100 on average, and rated clients’ personal finances at about 52 out of 100.
However, both advisers and investors remained much less confident on the wider economy and market. Investors rated the economy and market at just 39 and 44, respectively, while advisers rated them at 48 and 39.
Bolton added: “One of the clearest themes to emerge is the value of financial advice during periods of uncertainty.
“While investors may feel confident overall, periods of market volatility can still test decision-making and emotions,” he continued. “At those moments, advisers can help people maintain perspective, avoid reacting to short-term noise and stay focused on what they are ultimately trying to achieve.”
See also: Geopolitics and government debt top wealth manager worry list
