Investor sentiment at lowest in nearly three years

Survey3Investor sentiment has dropped to its lowest level since May 2013 due to significant market turbulence in the opening months of 2016, a survey suggests.

The Lloyds Bank Private Banking Investor Sentiment Index has been published on a monthly basis since March 2013, and this month’s figures indicate the largest fall in monthly investor sentiment since then. Sentiment towards UK equities is now at its lowest since the index began.

Overall investor sentiment for February remains positive, although just barely – on average, sentiment towards asset classes stands at 2.98%.

Markus Stadlmann, chief investment officer at Lloyds Bank Private Banking, said: “This is a time for calm heads and careful research. Now more than ever, identifying buying opportunities in the equity market requires a deep understanding of company valuations and how markets work.”

Since January, net sentiment towards emerging market equities’ sentiment has declined by 5.9 percentage points; UK equities have experienced a drop of 6.9; commodities’ sentiment has fallen by 8.3; and Japanese equities’ sentiment has fallen by 17. European equities enjoyed the only increase in sentiment (of 3.5 percentage points), although sentiment is still negative at -30.3%.

UK property is the most appealing asset for investors, with sentiment at a positive 48.6%.

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