Confidence in equity markets appears to have reached an all-time low after a survey revealed as many FDs would spend a sudden windfall on a good holiday as they would on shares.
With gloom spreading across the square mile as a result of one accountancy scandal after another, the latest Accountancy Age/ Reed Personnel Big Question shows that even the most experienced businessmen would not invest in the markets.
Indeed only 13% would invest in shares, the same number as those who would spend the money on a holiday. A massive 49% of the 323 FDS polled would put their money into property – a sign that house price inflation and low interest rates has made buying homes a better investment bet by far.
One FD said: ‘Bricks and mortar always carry value with no risk element.’ Another chose liquid assets: ‘If it was £1,000 I would drink it!’
Another admitted that if asked a year ago the answer would probably have been shares. He said: ‘Ask me again in a few weeks and if the weather is the same as now the property would have to be overseas.’
Only 25% of FDs would go with savings, with one FD saying: ‘Shares are too volatile at the moment and I would find it difficult to waste the money on a one-off holiday.’
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