LONDON, ENGLAND — (Marketwired) — 11/26/13 — The majority of investors would not change the structure of their portfolios in the event of a US default and believe it would only have a short-term impact on the markets, according to the latest Market Tracker.
Despite speculation over the consequences for global markets as a result of a technical default in the US earlier in the month; almost three quarters (74%) of UK investors do not believe the impact would warrant a change in their portfolio. More than 60% think it would only have a short-term impact with just 27% predicting it would have a long-term impact.
Damian Stansfield, managing director of Halifax Share Dealing, says:
“The possibility of technical default has receded again, but the issue will return should US politicians not reach an agreement over the debt ceiling in early 2014. While we don-t know what the exact impact of a technical default would be, it could include a decline in the US dollar and a decline in global GDP – both of which would have consequences for global markets.”
Strong increase in consumer services holdings
Month on month figures reveal an 11.9% increase in the percentage of investors holding consumer services stocks, with 46.1% currently invested here compared to 41.2% in August. The only other sector in the top five to see a month on month increase in investors was general industries (up from 33.3% to 36.8%).
While energy and mining stocks remain the most widely held sector, on an annual basis the percentage of investors in this sector has decreased from 72.5% to 64.7%. Since the beginning of the year consumer & retail products has seen the most withdrawals from investors and is down 13.3% to 39.7%.
Source: Halifax Share Dealing Market Tracker
Future investment trends
Looking ahead over the next six months the number of investors planning to invest in financial services companies has fallen to 46.1% from 51.3% in August. However the percentage planning to invest in energy and mining stocks has increased from 45.4% to 49.2%, and the percentage planning to invest in consumer services has risen from 27.6% to 31.9%.
In general, over the last six months 63.4% of investors have reported an increase in the value of their share portfolios compared to 15.6% who have experienced a loss.
The percentage of investors who are predicting the FTSE100 will be higher in six months has fallen from 66.3% in August to 55.1% in September. However, longer term investors are more optimistic it will increase with 74.6% predicting it will be higher one year from now and 82.7% predicting it will be higher in five years time.
To view the graph accompanying this press release please click the following link:
Contacts:
Halifax Press Team
Ben Marquand
01422 332833 / 07881 311199