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UK investor confidence buoyed by vaccine roll-out and lockdown easing

The vaccine roll-out and the easing of lockdown restrictions is increasing optimism among UK investors.

That is according to an independent survey, commissioned by HYCM (Henyep Capital Markets), of 735 participants.

The survey found that 41% of investors in the UK had confidence that vaccine roll-out would be beneficial to their investment portfolios.

The same number of people believe the relaxing of social distancing rules will have a similarly beneficial impact on their investments.

More people (22%) think Joe Biden’s presidency will have a favourable impact on investments than those (8%) who believe his tenure harmful.

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The most popular asset class for UK investors is cash, with 33% of those surveyed planning to invest more into their savings over the coming 12 months.

Stocks and shares (22%) and property (14%) are the next most popular options.

Giles Coghlan, chief currency analyst, HYCM, said: “The success of the vaccine rollout is clearly having a significant influence on investors’ mindsets. In allowing lockdown rules to be lifted and the UK economy to spark back into life, the speed of the vaccine programme should also mean that investors – like consumers – become more active in the months to come.”

“Meanwhile, it is interesting to see that many investors remain wary of how Brexit could affect their savings and investments. While a no-deal outcome was avoided, a large number of investors still fear a tail risk to their assets. It will likely take time for these concerns to subside.”

“In terms of asset classes, UK investors can clearly see the property bubble forming, not just in the UK but around the world – property prices globally have been spurred on by low interest rates. It makes sense that cash savings remain popular given the uncertainty that still lingers overhead, while bonds are evidently also being considered by many. If central banks start tapering, bond yields will become more attractive, and this should see some UK investors moving into bonds from equities.”

The trading broker commissioned an independent survey of 735 UK-based investors, all of whom have investments in excess of £20,000, excluding their property, savings and workplace pensions. It found that 41% are confident the vaccine rollout will benefit their investment portfolios.

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