Investors go 'risk on' as equities show further gains

15 March 2013

  • Halifax Share Dealing surveys investors to establish what impacts their investment strategies and where they are investing

More than a third of investors (35.4%) are planning to switch more of their portfolio into equities, according to the latest Halifax Share Dealing Market Tracker.

The decision comes as the FTSE broke the 6,400 points mark on 6 March, the first time this barrier has been crossed since December 2007.

Investor confidence in the domestic equity market has been boosted by data from the latest Purchasing Managers Index, which reported the services sector saw the fastest rise in business activity in five months last month, and the current situation in the eurozone and US.

Indeed, among those in a "risk on" mood, 100% of respondents who said that they would be looking to invest more of their portfolio in equities would do so on the London market. The New York market proved a less popular option with just 23% of respondents indicating that they would switch more of their portfolio into American stocks.

Damian Stansfield, Halifax Share Dealing, comments:
"The ongoing rally in the FTSE has shown enough substance to persuade over a third of investors to switch more of their portfolio into equities. The outlook for the service sector is optimistic, countering concerns in other areas, but whether this momentum will last depends on where we are in the economic cycle whether we see global momentum continue to build.

"While the latest economic data was enough to make the Bank of England’s Monetary Policy Committee vote to maintain the official Bank Rate at 0.5% and hold its Quantitative Easing programme at £375bn in March, not all investors have been convinced by the short-term outlook to change strategy.

"Indeed 45.4% of investors said they were happy with their existing strategy and 19.2% said they remained cautious about how much longer the current strength of the markets can last."

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