UK investors are set to boost trading in the face of increased volatility in global stock markets, new research from GraniteShares shows.
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Will Rhind, Founder and CEO at GraniteShares
- US Presidential election and Middle East conflict will keep markets volatile this year, GraniteShares research shows
Its study found more than four out of five (81%) of regular stock market investors expect volatility to rise this year with the US Presidential election in November and continuing conflict in the Middle East the key drivers.
However the research found more UK investors see volatility on global markets as an opportunity with 28% planning to increase their level of trading this year compared with just 10% who plan to scale back trading in response.
The research for GraniteShares, which offers a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK US and European markets, found 28% of traders plan to maintain their trading levels from last year while another 14% have yet to decide what they will do in response to rising volatility. Around 19% believe volatility will not increase.
The US Presidential election is seen as the biggest reason for increased volatility this year with 63% selecting it as one of the two key factors likely to drive rising volatility this year ahead of 56% who cited the continuing war in the Middle East.
Around 43% selected the possible UK general election this year as one of the top two reasons for rising volatility while 33% pointed to the war in Ukraine and 6% chose incidents linked to climate change.
Will Rhind, Founder and CEO of GraniteShares, said: “Investors have lived with stock market volatility for so long now that it is understandable that so many see volatility and the opportunities it creates as a reason to increase trading levels”.
“With around half the world’s population voting in elections this year there are likely to be shocks which can lead to extreme stock market reactions and the US Presidential election is obviously the most closely watched.”
Source: ETFWorld.co.uk
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