UK investors get ready for a volatile year

Eugenia Jiménez
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UK investors get ready for a volatile year

More than half of UK investors believe that the current international political landscape is making investment markets more volatile, according to new research.

The survey, conducted by trading broker HYCM, found that 57% of UK investors feel that the current international geopolitical risks are increasing volatility in the investment markets. The figure goes up till 71% among London investors.

As a result, 36% of UK investors are planning to restructure their portfolios throughout the year to account for such market volatility although 39% of respondents feel they lack knowledge to implement the diversification in their portfolios they wish.

In times of volatility, investors need to be versatile; they must keep a keen eye on political events, and when necessary, adjust and adapt their portfolio to changing market conditions."

The results come amidst Brexit, escalating military tensions in the Middle East between the US and Iran, and the ongoing US-China trade war. 

Giles Coghlan, chief currency analyst at HYCM, said: "If the opening weeks of 2020 are any indication of what's to come, with strong safe haven bids into gold, investors are in for another eventful year.

"Domestic and international political events can have a profound impact on the financial markets, sharply influencing the value of assets and currencies around the world.  
 
"In times of volatility, investors need to be versatile; they must keep a keen eye on political events, and when necessary, adjust and adapt their portfolio to changing market conditions. However, this should not be viewed in a negative light. As we have seen in the past, a downturn in one market can also lead to an opening in another."

Almost a third (32%) fear Brexit will negatively impact their investment portfolio in 2020 with the figure growing up to 43% among London investors.

The trading broker HYCM surveyed more than 750 UK investors - all of whom hold at least £10,000 of investment assets, not including pensions, savings or property - to uncover how they are planning their financial strategies in 2020.

Eugenia Jiménez
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Eugenia Jiménez

Eugenia Jiménez speaks Spanish and is Iberia Correspondent for Investment Europe covering Spain & Portugal, as well as Italy.