2010 UK Private Investors Survey from MoneyWeek, the UK’s Best-Selling Financial Magazine

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The average private investor has taken more control of their money since the financial crisis. They expect UK house prices to fall this year, and the stock market to be flat to lower, but not crash. They also reckon that China and gold are the key areas to watch out for the next investment bubble.

The financial crisis has dented many private investors’ faith – what little they may have had – in the investment industry in general. We’re finding, as a result, they’re now taking more control of their own financial situations and are taking measures to get themselves financially better-informed.

A recent survey of 2,165 UK investors shows:

  • post financial crisis, nine out of ten are now managing more of their own money
  • RBS, Northern Rock and Citi banks were the least trusted
  • investors think average UK property prices will end the year lower
  • they think the FTSE 100 will end the year lower
  • they think the next investment bubble will inflate in China/emerging markets and gold
  • they’re divided on whether the UK will lose its AAA credit rating this year

For more detail: UK Investors Survey 2010

Since the financial crisis of 2008, nine out of 10 UK investors have taken more control over managing their own money, rather than handing it over to investment professionals, according to the 2010 UK Investors Survey, to be released next week. Almost half (46 per cent) say they now manage their entire portfolio themselves.

The UK Investors Survey is conducted by MoneyWeek, the UK’s best-selling financial magazine. This year’s survey has been compiled from 2,165 detailed responses from its subscriber base of private investors and City professionals.

A strong high-street presence and steady course through the credit crisis have helped HSBC, Barclays and Nationwide become the three most-trusted high-street financial brands. From a pool of 20 of the best-known high-street banks, building societies and insurers, Citi, RSA (formerly Royal Sun Alliance), Northern Rock and Royal Bank of Scotland were voted the least trusted.

HSBC was the most trusted financial brand, with one in three (715 of 2165) investors putting it in their top-three. Barclays (562) and Nationwide (471) were voted second and third respectively. The next most popular answer given was “none of them”, reflecting the tough time the financial sector in general has had recovering its battered reputation following the 2008 Credit Crisis. Interestingly, the Co-operative Bank (448), majoring on its aims of social and environmental responsibility, was the next most-trusted. Despite the markets recent jitters about the Greek economic crisis spreading to other Mediterranean countries, Spanish bank Santander (412) came in as the fifth most-trusted brand.

Summing up the survey, MoneyWeek editor John Stepek explains: “The financial crisis has dented many private investors’ faith – what little they may have had – in the investment industry in general. We’re finding, as a result, they’re now taking more control of their own financial situations and are taking measures to get themselves financially better-informed.”

The survey also went on to show that private investors, on average, believe UK property prices will end the year some 5-10 per cent down from where they began it in January. In addition, investors, on average, believe the FTSE 100 will end this year in the region of 4,500-5,500, a little lower than where it started 2010.

When asked where the next investment bubble will inflate, most investors thought China/emerging markets (42 per cent) and gold (21 per cent) were the two most-likely areas. Only three per cent thought it would be in property.

The most uncertainty came over the belief that the UK would lose its AAA credit rating by the end of the year: 33 per cent said no it would retain it, while 27 per cent said yes it would lose it, giving only a marginal vote of confidence. Forty per cent were not sure.

For more detail: UK Investors Survey 2010

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