UK and expat investors confident despite poor economic outlook

by Ray Clancy on September 5, 2012

Investor groups remain confident in equities

UK and expat investors remain confident about investment opportunities despite general bad feeling regarding the global economy, a new survey reveals.

TD Global Investor Confidence Study of over 2,000 UK and expat investors from around the globe found that over half, some 57%, of all respondents expect the global economy to fall back into recession in 2012, while 45%) expect the UK economy to either contract or show no growth.

Despite this gloomy economic outlook, both investor groups remain confident in equities as their preferred investment choice for both income (46%) and growth (43%) above any other investment class.

In fact, both UK and expat investors agree that equities, precious metals and commodities are the top three asset classes to invest in for both income and growth.

‘UK investors have no doubt been mindful of the economic pressures being felt both in the UK and across the globe. Yet the findings of our 2012 survey demonstrate that their resilience and confidence to seek out investment opportunities, particularly in equities, remains high,’ said Stuart Welch, chief executive officer of TD Direct Investing.

According to Annemarie Jung, chief executive officer of Internaxx Bank, a TD Company servicing international and Expat investors, pointed out that the recent economic turmoil in Greece, Italy, Spain and Ireland will no doubt have placed a heavy burden on both UK and Expat investors.

‘This demonstrates that now more than ever it is important they have the opportunity to diversify across different asset classes and international markets where they can,’ she explained.

When it comes to international markets TD’s survey appears to show a real shift of confidence in Europe. In the 2010 survey, 47% of UK investors said they would be most likely to invest in Europe in the next 12 months, the latest findings show just 1% expect Europe (excluding the UK) to perform best in 2012. The figure for UK and Expat investors combined was only marginally higher at 2%.

While this illustrates a significant decline in confidence in the European markets, elsewhere confidence is more positive. In particular UK and expat investors share the same expectations that Asia will perform best over the next 12 months (48%), followed by the USA (16%) and Australia (9%).

With the continuing rise of online news sources and information available to investors and RDR fast approaching, TD found that people are increasingly reliant on their own research when making investment decisions.

Some 45% of UK respondents and 44% of expats said they now rely on online news and tools provided by their execution only broker, while just 17% of both UK and Expat respondents rely on the advice of their broker.

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