Investors confidence that the UK stock market will be higher in six months time increased slightl...
Investors confidence that the UK stock market will be higher in six months time increased slightly in March, but confidence is still well down on a year ago according to Chase Fleming Asset Management's monthly Investor Confidence Index.
Commenting on the results Peter Brewster, Head of Market Research at CFAM, said: "The FTSE 100 monthly average index has fallen for five consecutive months in a row, which is quite unusual and has not happened since the Asian crisis in the summer of 1998. This has obviously dented investor sentiment with the confidence index only just off its lowest point since the survey started a year ago".
Brewster added: "Although, it is early days, perhaps investors feel we have reached the turning point. Fundamentals still remain good for equity growth in the UK and investors will find plenty of bargains out there. Experienced investors recognise that when markets have falIen to a two-year low, that has to be seen as a buying opportunity for the long term investor.
The survey, taken each month, uses a random sample of 500 investors to find out whether they believe the stockmarket will be higher in 6 months time, stay at roughly the same level or will be lower. The feedback is compared against movements in the FTSE 100.
For investors worried about getting their timing right, Brewster suggests the option of 'drip-feeding' investments through monthly regular savings into unit trusts. This 'pound cost averaging' approach should ensure more units can be bought when share prices fall.
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