- The HL Investor Confidence index has dropped by 10 points this month, down to 57
- Confidence has fallen in all global sectors, the largest drop being the North American sector, which fell by 20 points
- Confidence in UK Economic growth has dropped by 4 points
Investor Confidence Hit Hard By Inflation Fears
Emma Wall, Head of Investment Analysis and Research:
“Rising inflation, political uncertainty and growing concerns about a global recession has hit investor confidence hard this month. Across the globe, central banks are raising interest rates in a bid to stem inflation – but with so much out of policy committee’s control, the immediate outlook remains bleak. The war in Ukraine continues to dominate prices, markets and the economic outlook.
Over the weekend, Russia and Ukraine signed a deal which would allow grain to be exported from Ukrainian ports which immediately saw wheat prices fall to levels last seen pre-invasion. Yesterday, President Putin ordered attacks on the one of the ports, causing wheat prices to rise again – and signalling to the world that the war – and associated political and price uncertainty – is far from over.
Global investors have responded by selling out of equity funds, instead looking to lower-risk assets. Amongst the most bought funds on the HL platform this month have been both money market funds, and multi-asset funds invested for capital preservation, such as Troy Trojan, and the Personal Assets investment trust.”
Investor Confidence index
The investor confidence index is compiled by surveying HL clients on a monthly basis. Each month we send the investors’ confidence survey to 6,000 random clients and there is a representative split of our clients by age. On average around 10% of clients respond.
Investor Confidence – UK score
Investor Confidence – Global Sectors
About Hargreaves Lansdown
Over 1.7 million clients trust us with £132.3 billion (as at 30 April 2022), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.