Wary investors still nursing burnt fingers

ALMOST six out of ten UK investors say they will stay out of the stock market for at least the next three years, according to new research. A survey by AlixPartners Financial Services of investors who had previously invested in stocks and/or funds found that 30 per cent have stopped or reduced their investing since the start of the year, with just 42 per cent of UK investors expecting to invest in the stock market within the next three years.

However, the research found that UK investors are much less risk averse than their German counterparts. While 29 per cent of UK investors said they would not invest in stocks or funds in the next three years, and 29 per cent said they were unsure, 38 per cent of Germans said they would not return to the market over that period. US investors were more positive: only a fifth ruled out a return to equity and bond markets over the next three years.