Wealthy Brits still keen to invest

Friday, 21 November 2008 09:01

Wealthy Brits are planning to return to the stock market soon, according to research.

As fears over the economy have deepened this autumn, many investors have withdrawn from the stock market, sending share prices tumbling, while property investors have also witnessed their assets decline sharply.

However, with many blue-chip companies trading at multi-year lows and house prices plunging, some investors see bargains.

A survey from Mintel found among wealthy Brits, one in every four (26 per cent) is planning to expand their investment portfolio in the very near future.

Of those looking to invest, as many as one in five (19 per cent) would like to buy equities either in an equity ISA or individual company shares, one in twelve (eight per cent) would consider buying property, while three per cent are planning to buy alternative investments such as vintage cars, art or commodity funds.

"Even though share prices could still come down, in comparison with just a year ago, equities are looking good value for money.

"For those who have the stomach for it and the spare capital, and who are prepared to take a longer-term view, then now could prove to be a good time to invest," said Toby Clark, head of financial research at Mintel.

"And with the recent interest rate cuts, the wealthy have even more reason to concentrate on equity investment rather than cash savings."

Although the ideal time to buy stocks is when they hit rock bottom, there is no way to know when this will happen and any further financial shocks could hit the market hard.

However, some companies will perform better during the downturn than others, so consulting a financial adviser before embarking on any investments would be a shrewd move.

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