More than half of IFAs expect market volatility to last a minimum of six months, according to a survey by Barclays Wealth.
The provider surveyed 120 advisers and found almost a fifth anticipates at least another year of turmoil.
A total of 40% expect volatility to last between six months and a year, while a further 17% predict turbulence for at least another 12 months.
Colin Dickie, director of Barclays Wealth, says: “Volatility is a huge concern for advisers and there is clearly a widespread belief that it is not going to end any time soon. Preserving investors’ capital in these conditions has become a real challenge for advisers, particularly those with clients exclusively invested in unprotected equities."
The survey also shows many IFAs believe equities, particularly in international companies, will prove the best performing asset class over the next three months, despite expecting a rough ride well into 2008.
Almost 50% believe international equities will outperform other asset classes over the next 12 weeks, with 14% holding out more hope for UK equities.
A total of 12% think cash will perform best over the period while 10% expect international property to outstrip other asset classes. Just 8% believe fixed income will perform the best and only 2% think UK property will prove a better investment.
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