Some 70% of advisers say clients are not investing owing to high interest rates and instead are opting to money into savings accounts, according to a survey from Morningstar Wealth.
Based on a poll of 108 advisers during a recent Morningstar Wealth webinar, a quarter of those advisers surveyed said savers do not want to invest with stockmarkets hitting all-time highs, while nearly 20% said they want more information on what the new Labour means for investment markets to help keep clients invested.
“High interest rates paired with all-time high markets, means people simply aren’t investing as much as they should,” said Mark Sanderson, managing director UK & International at Morningstar Wealth. “Investor sentiment is rebounding but people are still tending to favour cash deposits over investments in stockmarkets.”
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“We are seeing plenty of opportunities for investors to generate returns despite markets being at all-time highs,” he added. “Much of the recent market growth has come from large caps and especially tech companies, but outside these areas, there remain many interesting investment opportunities.
“Financial advisers need support to help keep their clients invested, especially during high interest rate periods to maximise their long-term returns.”
