Investor sentiment in UK falls in February to lowest point in 2.5 years
This month’s Lloyds Bank Private Banking Investor Sentiment Index shows how investor sentiment has taken a significant hit following the turbulent start to 2016.
Positivity towards gold soars as the actual market performance of the asset also increases in February.
With ongoing market turbulence, the actual market performance of most asset classes dropped again this month. As a result, overall investor sentiment has fallen to its lowest level since May 2013 (2.98%).
Sentiment towards UK equities is now at its lowest level since the Index began in March 2013, dropping by over six percentage points (a 6.88% reduction) in the past month to a level of 6.38%.
US equities experienced a similar dip in sentiment, falling by 6.59% during the month to -0.80%, their lowest level since November 2013. Both UK and US equities also experienced their biggest ever year-on-year falls in February, with sentiment towards these two asset classes plummeting by 22.73% and 18.31% respectively.
When the actual market performance of equities is analysed, it is easy to see why sentiment has fallen so far. UK, eurozone, U.S., Japanese and emerging market equities all saw their performance fall between 5.8% and 8.6% in the past month..
There is a similarly negative picture when comparing recent actual performance with that of six-months earlier; there were falls of between 9.3% (UK equities) and 14.3% (emerging market equities). ■