Investors fish for opportunities in choppy waters

Three-quarters of stock market investors are using the current instabilities to look for investment opportunities.

A poll by the Share Centre reveals investors are unphased by the aftermath of the US subprime crisis and the credit crunch, with 37 per cent claiming it is a good time to pick up bargain stocks.

However, there is realism about the future of the market. Some 75 per cent of investors predict the market in some sectors will remain volatile and 28 per cent were uncertain about where to step forward.

Furthermore 58 per cent of investors have made no trades at all in the last six months, but they may be hiding their light under a bushel. On average the Share Centre recorded an average of 1.8 trades per trader.

However, 61 per cent of investors do have a financial plan in place.

Andy Parsons, advice team manager at The Share Centre, said: "It is essential investors consider the financial events that may occur throughout their lifetime, and that they understand where the finances to pay for these events will come from.

"A simple strategy is to ‘earmark’ certain savings investments for certain events and remembering not to access those monies until required. Failure to adopt these principles could mean hopes and dreams fade, while an increase in debt may potentially follow."

The research also reveals 36 per cent of investors were looking at collective investments, such as investment trusts and unit trusts, during the stormy markets.

"Collective investments should be an integral part of all investment strategies and plans," said Mr Parsons.

"Through their ability to be widely diversified - encompassing varieties of asset classes, investors are able to gain exposure to markets and sectors, which would otherwise be off limits because of minimum investment levels and costs."