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The majority of UK investors fear the current international political landscape is making investment markets more volatile, new survey conducted on behalf of HYCM has revealed.

The trading broker commissioned an independent survey of 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.

It found that 57% believe the current international political landscape is making investment markets more volatile. The results come amidst Brexit, escalating military tensions in the Middle East between the US and Iran, and the ongoing US-China trade war.

Portfolio management disappointments

Three in ten (30%) UK investors say their investment portfolio did not perform as they were expecting in 2019. With the UK leaving the EU last month, almost a third (32%) of investors also fear Brexit will negatively impact their investment portfolio in the coming months.

As a result of unfolding political events, 36% of the investors surveyed said they are planning to restructure their portfolios throughout the year to account for market volatility. However, HYCM’s survey showed that two fifths (39%) of investors feel they lack the knowledge to diversify their portfolio. This is despite the fact that 36% said they rely on financial advisors to guide their investment decisions.

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.”

Coghlan reckons that 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.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.


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