Geopolitical conflict has been ranked as the primary concern for UK retail investors over the next six months, according to IG Group’s bi-annual client sentiment survey.
The survey found that 58% of respondents placed geopolitical conflict as their primary concern.
A further 46% also highlighted recession among the factors that could negatively impact their portfolios.
While 43% said the effect of inflation on investment performance was a continuing worry, this was a downward trend from the 58% who were concerned in the previous survey in June 2023.
The UK dipped into a technical recession at the end of 2023, with GDP falling marginally for two consecutive quarters.
See also: UK slips into recession as economy contracts 0.1% in December
While IG’s UK clients remained concerned about the state of the economy, the level of concern has reduced compared with June last year.
By sector, 28% of respondents believe energy will experience the largest growth in the next six months.
This was followed by technology hardware and equipment at 24%, with 23% eyeing opportunities in software and services.
This article was written for our sister title Portfolio Adviser
