Three quarters of investors who consulted an adviser before making portfolio changes are optimistic about their long-term financial prospects, according to a survey by Lloyds TSB Wealth Management.
Investors who have taken advice from a financial adviser have the most confidence in the stock market at 38% and 31% of investors with a financial plan feel confident in the stock market. A total of 22% of investors without a plan feel confident.
The survey also examines investor confidence following the volatile summer and shows 54% feel well informed about the stock market activity over the past three months, with 71% following newspaper stories about the credit crunch. Only 15% feel uninformed about the recent turbulence.
Nathan Moss, managing director of wealth management at Lloyds TSB says: “It is surprising that despite other periods of volatility in recent years and the availability of expert advice, more than a third of stock market investors still don’t have any kind of comprehensive, structured financial plan in place.
"By speaking to an expert, investors can have confidence that their needs will be met over the long term.”
The research also shows one in five stock market investors have moved some of their money into more cautious investments such as cash or bonds over the past three months.
A total of 37% have felt apprehensive about stock market investments over the past three months and 48% have decided to review, or considered reviewing, their investments.
A total of 17% kept their stock market investments the same but invested more in other investments while 9% decided to invest more money in equities to take advantage of any subsequent rises in share prices.
The survey shows 31% cite concern about the market as a result of the media coverage of the credit crunch as the main catalyst for making changes to their portfolio while almost a quarter acted on guidance from their financial adviser or bank.
Moss says: “It’s important for investors to consider their own circumstances and avoid a knee-jerk reaction. By speaking to an expert and building a balanced portfolio, investors can ensure that their finances remain in good shape despite changing stock market conditions.”
A total of 43% say that they considered their decision carefully and have no regrets about the changes they made to their portfolio despite not having seen any benefits yet, while 30% say they have already benefited from the changes they made. Around 18% say they cannot yet tell if they took hasty action.
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