Retail stock market traders are more confident about the outlook for global markets over the next 12 months than they are about their own investments, according to new research from GraniteShares ETP.
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Will Rhind, Founder and CEO at GraniteShares
- One in three are negative about their own investments, GraniteShares research shows
- Inflation and the war in Ukraine remain major concerns for the global markets
A study of investors who regularly trade shares, bonds and funds found one in three (32%) are worried about the outlook for their own investments compared with less than one in four (23%) who are confident about the outlook. Around 39% are neither worried nor confident while 5% are unsure.
By contrast there is more support for a positive outlook for global stock markets over the next 12 months with 39% predicting growth compared with 28% forecasting markets will be generally flat or down over the year ahead. Around 33% did not want to make a prediction. Around 6% are expecting markets to grow by 10% or more, while 4% are forecasting falls in global share prices of more than 10%.
The research from GraniteShares, which offers a range of exchange traded products (ETPs) listed on national exchanges, found retail traders ranked inflation and the war in Ukraine as the biggest risks for global markets. Nearly half (48%) highlighted the risk of inflation while 46% pointed to Ukraine.
Nearly a third (32%) believe rising interest rates and central banks are the biggest risk while 23% pointed to the risk of UK political change.
Will Rhind, Founder and CEO of GraniteShares:
“There is contrast between investors’ outlook for global markets and their concerns about their own investments. Historically, markets rise more than they fall but past performance is no guide to the future and investors are clearly nervous as to how conditions will impact them. We’ve seen this dichotomy in our ETPs – with sophisticated investors considering shorting and leverage as a way to take advantage of opportunities that arise in a volatile landscape.”
Source: ETFWorld.co.uk
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