"Geopolitical uncertainty is deterring would-be investors and prompting existing savers to retreat into cash, despite warnings that stepping back from equities risks missing long-term gains."
"The study suggests that one in four UK adults (25 per cent) who do not currently invest are now even less likely to begin, while 10 per cent of existing investors are considering scaling back exposure and moving funds into cash savings."
"At present, 34 per cent of respondents said they are more inclined to place money into interest-bearing cash savings accounts amid global uncertainty, reinforcing the appeal of perceived capital protection during periods of instability."
"Data cited by Finder shows that an investor placing £10,000 into the market shortly after the escalation of the Russian invasion of Ukraine would now have £14,553, while waiting for a recovery would have resulted in only £13,437."
Geopolitical instability is discouraging UK adults from investing, with 25% of non-investors less likely to start and 10% of current investors considering cash. Over a third of adults are now less inclined to invest due to heightened tensions. Conversely, 18% are more likely to invest, while 35% maintain their current strategy. The appeal of cash savings is reinforced by perceived capital protection. Analysts caution that timing market exits can be costly, as demonstrated by potential gains from investing during market volatility.
Read at London Business News | Londonlovesbusiness.com
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