30 March 2011

Three quarters of UK HNWIs expect UK equities to perform well this year

A survey conducted by Towry, the wealth advisers, has shown that almost three quarters (73%) of people surveyed are optimistic about the UK equity market. 

Over 500 visitors to the Towry website participated in the survey, responding to the question: Do you think UK equities will perform well in 2011?

The responses produced the following results:

• 364 Votes Yes
• 247 Votes No

Towry's Insight team conducts regular surveys with clients and external groups as part of its Insight Agenda, designed to gauge consumer attitudes towards issues in the financial advice and wealth management sector.

Dr Robert Dawkins, Chief Investment Officer, Towry, said: 

"At the start of 2011 the consensus expectation for equity returns on the year was around 10%, with some forecasters suggesting 20% returns as more likely. A recent Bank of America Merrill Lynch survey showed professional investors having a stronger risk appetite than at any time since January 2006, while hedge fund managers held their largest net long positions since July 2007.  

It was therefore somewhat inevitable that markets would, instead, encounter some turbulence, and there is plenty of scope for equities to revert further back down towards their 200 day moving averages.    

Nevertheless the overall trend in markets is still positive, and UK equities offer decent value as part of a well diversified multi asset class portfolio."

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