Tel: 01283 701569

Experienced Independent Financial Advisers

Roadmap for investors

4 Apr 2022

Increased confidence portfolios will perform well in 2022

In 2021, there was a return to some form of normality across a vast majority of regions following successful vaccine roll-outs around the globe. But will the economic rebound continue in 2022, or be stymied by rising energy prices, higher inflation and further continued uncertainty brought about by the pandemic fallout?

Will we finally see material change in the way investors assess sustainable companies? What’s going to happen in 2022? To answer some of these questions, new research has revealed that investors have headed into this year feeling more optimistic about the year ahead.

Market fluctuations
The findings show that nearly two-thirds (62%) of investors are confident that their portfolios will perform well in 2022. Twice as many investors are likely to add money into the stock market this year compared to last year.

Half (49%) of investors say that the market fluctuations since lockdown mean they are more likely to invest more in the stock market this year – a considerable increase since last year when just one in four (24%) said they are likely to.

Increasing involvement
Ethical investing considerations continue to grow, with twice as many investors this year saying they are conscious of what their money is funding (30% compared with 15%). The biggest challenges are seen as inflation (43%), interest rate increases (42%), new COVID-19 variants (34%) and the continued impact of Brexit (31%).

Along with the confidence in the market has come increasing involvement, with half of investors (49%) saying they have become more actively engaged in their portfolio.

Responsible investing
The trend for socially responsible investing continues to increase, with almost one-third of investors (30%) saying they are now more conscious of the types of businesses and industries that they are funding – double the number (15%) of last year.

When it comes to geographical regions, 36% of respondents see the UK as offering the greatest opportunities, followed by emerging markets (32%) and the US (31%).

Inflation persisting
Investors are also conscious of the challenges their portfolios may face this year. With concerns about inflation persisting, people are right to look to the stock market as one of the ways they can preserve spending power over time. As always, diversification is key to more reliable investing success.

The future will remain unpredictable, as the last few years have demonstrated. As the world changes, the areas of the stock market that may prosper over the next five or ten years will not necessarily be the same as the previous decade.

Different sectors
The same is true of other investible asset classes, from government bonds to commodities – the leader board for the years ahead could look entirely different to the one in our rear view mirror.

To give investors’ money the greatest chance of growing, it is important to spread the bulk of it out across different sectors, regions and asset classes and leave it there for at least five years. For those investors that want to take a more speculative approach with their portfolio by backing individual companies they believe in, remember this is a higher risk approach, so do so with a smaller share of your money and see it as garnishing.

Source data:
[1] Censuswide data collected from two comparison surveys, run in December 2021 and November 2020. Both surveys have a representative sample size of 2,000 respondents. All respondents were 18+ and had previously invested money.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.

THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED. PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE.

Footnote: Our belief is that all finacial advice should be tailored to your particular needs and situation. The content of the articles featured in here are for your general information and use only; they are not intended to address your particular requirements or constitute a full and authoritative statement of the law. They should not be relied upon in their entirety and shall not be deemed to be, or constitute advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. Please get in touch to meet with us for a full consultation.

Get in touch for more details

Please fill the form below to contact us

    Your Name (required)

    Company Name

    Your Email (required)

    Areas of concern

    Individual servicesCorporate servicesMiscellaneous

    Subject

    Your Message

    We take your Privacy Seriously. Personal information submitted to us with this form will be treated in accordance with the Data Protection Act 2018 and General Data Protection Regulations ‘GDPR’. By submitting this enquiry form you expressly consent to be contacted without prior notice or arrangement by using the contact details you have provided on the form. For further information on how we treat your personal information, please view our Privacy Policy

    I have read and agree to the privacy policy. Please retain my details to contact me.Please do not add me to the mailing list.