Page 34 - DIY Investor Magazine | Issue 41

· August 2024 34
DIY Investor Magazine
71% OF DIY INVESTORS THINK THE FTSE WILL RISE IN THE NEXT SIX MONTHS - ONLY 10% THINK IT WILL FALL – BY CHRISTIAN LEEMING
And these beliefs are backed by action - 40% have increased their exposure to the FTSE 100 in the last 3 months, only 9% have reduced exposure.
Self-directed investors have come out fighting for the FTSE, with 71% believing the FTSE will rise in the next six months, according to new research from digital investment platform Charles Stanley Direct.
This confidence is driven by young
‘THIS CONFIDENCE investors. 80% of Gen Z DIYers
IS DRIVEN BY believe the FTSE will rise, followed
YOUNG INVESTORS’ by 77% of millennials. This falls to 64% of Gen X, and the same of Baby Boomers. Men are also more confident, at 74%, than their female investor counterparts (68%).
Critically, investors are putting their money where their mouth is. 40% of DIY investors have increased their exposure to the FTSE 100 in the last 3 months, and only 9% have reduced exposure. Those investors taking financial advice are most likely to have increased investments, at 52% compared to 36% of those not taking advice.
And it’s not just the FTSE ‘BRITAIN’S COHORT OF
100. Investors are also DIY INVESTORS ARE
backing UK mid cap OPTIMISTIC THAT THIS
companies, with 35% BULL RUN WILL
increasing exposure to CONTINUE THROUGH TO
FTSE 350, and only
THE END OF THE YEAR’
10% decreasing exposure. 28% have increased their exposure to the Alternative Investment Market (AIM), which can also help mitigate inheritance tax liabilities.
Beyond equities, confidence in the UK translates to other asset classes. 32% of investors have increased their exposure to corporate bonds (only 11% decreasing their position), and 34% stated that they have increased their exposure to gilts (UK government bonds). This comes as UK bonds rally following the decisive election last month.
This increase in British exposure puts the FTSE at the
top of the global podium. Compared to the 40% of DIY investors upping their FTSE 100 exposure, only 33% are increasing their exposure to US equities, 29% to European stocks, and a mere 25% to Asian equities.
DIY INVESTORS BACK FTSE BULL RUN
Rob Morgan, Chief Investment Analyst at Charles Stanley Direct, comments: “At last! After a sticky start to 2024, facing high inflation, high rates, a recession risk, and geopolitical chaos, the FTSE has emerged victorious. After a record performance in May, the index hit an all time high - and Britain’s cohort of DIY investors are optimistic that this bull run will continue through to the end of the year.
“And this isn’t empty confidence. Investors have been actively increasing their exposure to British equities over the last three months, at a higher rate than their global in- vestments. By being ahead of the curve, this positions DIY investors to realise their financial ambitions faster and more effectively than their passive peers - but all investors should be following the same rules; investing for the longterm,
with a diversified portfolio, and advice where appropriate.”
METHODOLOGY
The research was carried out for Charles Stanley by Censuswide, among a sample of 1007 DIY Investors in
the UK (’Self-Directed’), defined as; investors who actively choose their own investments, making their own asset allocation decisions, aged 18+. Survey conducted between 05/07/24 and 10/07/24.
Generational divides are as follows: Gen Z (18-26), Millennial/ Gen Y (27-42), Gen X (43-58), Baby Boomers (59-77), Silent Generation (78+). Responses were not high enough in the Silent Gen to be statistically significant.