Wednesday, June 26, 2024, 6:00 AM
Private investors are backing Labour over the Conservatives in next week’s election but believe the Conservatives would be better for the stock market. City AM can be revealed.
A survey conducted by Finimize found that 38% of UK investors said they would vote Labour, compared with 23% who said they would vote Conservative.
Despite the majority expecting increased market volatility after the vote had closed, most UK investors believed their portfolios would actually increase in value following the election.
The survey of more than 3,000 investors in the UK and US found that 76% believe global stock markets will rise in a year’s time, up from 74% the previous quarter.
US investors have similar opinions to their British counterparts about their country’s election, with more investors backing Democrats (47%) than Republicans (34%), despite more believing a Republican victory would be best for stock market performance.
Additionally, 38% of all investors said they plan to increase their investments in the next three months, with stocks remaining the most preferred investment choice, followed by ETFs and cash.
Optimism about Bitcoin remained strong among those surveyed but dipped slightly, with 61% expecting prices to rise in the next year, down from 63% last quarter.
“The tech giant is well positioned to continue to grow its presence in the U.S.,” said Carl Hazely, chief analyst at Finimize. City AM“Fueled by recent and further expected interest rate cuts, there are record levels of optimism among retail investors, and retail investor activity shows no signs of slowing for the rest of the year.”
“Despite looming elections in the UK and US, the data suggests retail investors are taking a long-term approach and are confident in the resilience of their portfolios.”
“While more than half don’t plan to make any major changes ahead of the election (59% of UK investors and 51% of US investors), they are optimistic about the value of their portfolios once the election season is over.”
