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Investor Confidence Returns to Pre-Recession Levels

The Investor Confidence Index grew 11.6% to 121 in July - the highest level seen since the credit crisis 

Emma Wall 14 August, 2013 | 11:38AM

Confidence has returned to pre-credit crisis levels among investors, with an index that measures investor sentiment reaching 121. The index has not been this high since May 2006 before stock markets around the world crashed.

British investors are turning bullish - with 80% predicting positive results for the UK stock market will rise over the long term. 

Short-term predictions are also positive, with six in 10 investors believing the FTSE 100 will rise over the next six months. 

The Investor Confidence Index is compiled by stock brokers Hargreaves Lansdown and revealed that sentiment is not far off the historic peak of 127, reached in July 1999 before the dot com bubble burst.

The Index reached a low of just 61 in May 2012.

Stock market returns and a revised economic outlook helped to buoy investors in July.

The region investors have most conviction about it is the US - with eight in 10 investors predicting positive economic growth over the next 12 months. 

There is only one US fund that carries a Gold Morningstar Analyst Rating, the Schroder US Mid Cap fund, run by Jenny Jones. Other highly rated US equity funds include JP Morgan US which holds a Silver rating and Threadneedle America which is rated Bronze. 

The Schroder US Mid Cap fund and the JP Morgan fund have returned 30% year to date, while Threadneedle America is up 26%.

Europe remains the least popular region, with less than half those who were surveyed considering it a growth region.

 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Schroder US Mid Cap Acc1.62 GBP0.44
Threadneedle American Rtl Acc GBP3.45 GBP-0.05

About Author

Emma Wall  is former Senior International Editor for Morningstar

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