The lowest level recorded on the investment platform’s index since its launched in 1995, is 59 in November 2016.
“Investor confidence is scraping along pretty close to the bottom of the barrel right now, in stark contrast to the stock market, which is riding high,” said Hargreaves Lansdown senior analyst Laith Khalaf.
The UK currently finds itself in economic limbo, with the election of a limp government and the start of the long and winding Brexit journey both creating a sense of suspense, which appears to have taken its toll on investor sentiment.”
There was also a noticeable difference among investors in terms of the expectations of an interest rate rise. Circa 44% of the investors surveyed by Hargreaves Lansdown believe there will be a rate hike in the next six months, up from 16% in June.
On a 12-month view, 81% of investors think there will be a rate hike, compared with 54% the previous month.
However, “there is a silver lining to the cloud currently casting a shadow over investor confidence,” noted Khalaf, “because it suggests markets are not being driven by reckless abandon, and that there is scope for improving sentiment to have a positive effect on stock prices.”
