Investment behaviour changing as the election nears

Investment behaviour changing as the election nears

A recent poll by The Share Centre as revealed that around 30% of their personal investors plan to change their investment behaviour as the general election approaches. The poll surveyed 500 of their customers online between 20/4/17 and 5/5/17 and results are particularly mixed. Around 33% expect the election to have a negative impact on the stock market whereas 25% believe it will have a positive impact.

Here are some of the key findings from the survey:

  • 19% of investors still believe that the UK should not leave the EU
  • 83% of investors believe that the Conservative Party best serves the needs of personal investors
  • 78% said that Theresa May would make the best prime minister
  • Around 58% believe that Theresa May will be returned as prime minister
  • 74% of personal investors said that Brexit will be one of the main factors that influences their vote
  • 59% said that the economy will be the main influencing factor

In response to the survey, Richard Stone, CEO of The Share Centre said “ Investors dislike uncertainty and it is perhaps unsurprising therefore that almost one in three are already changing their investment behaviour as the election nears.

“However, we would caution against kneejerk reactions. While the political discourse over the next few weeks may have an influence on sectors and individual stocks – as we have recently seen with energy companies falling in the wake of the Conservatives’ proposals to cap energy prices – proposals may be watered down or indeed not be implemented at all.”

The next few weeks promises to be interesting and it will be intriguing to see how the stock market reacts. Watch this space!