- The HL Investor Confidence index fell to 93 in March
- Confidence increased in the Asia, Pacific European and Global Emerging sectors
- It decreased in the Japanese, North American and UK stock market
- But, despite this drop in outlook, investors continued to buy US funds in March
Emma Wall, head of investment analysis and research, Hargreaves Lansdown
“Confidence dropped slightly in the US stock market in our Investor Confidence survey in March, however, it remains a region that our clients have strong conviction in – second only to Global Emerging Markets. It is therefore no surprise to see, amongst the most popular funds in March, were those that track the S&P 500 – the main US market.
However, more global funds make up the top 10 than in recent months, as investors diversify away from the US and hedge their global bets on where will deliver the best returns in the future. It is certainly a ‘risk on’ picture for HL investors. The top 10 funds in March were growth-biased global funds, tech funds and global trackers, as well as India – a market that has outperformed peers significantly over the past 12 months. This, however, is the only Asia or Emerging Markets fund that makes the top 10 buys, even though investor confidence in both Asia Pacific and Global Emerging Markets has risen. The most bought investment trusts paint a more diversified picture, though similarly risk-on in tone, with notable inclusions in the top 10 being renewable energy and private equity, alongside tech, US equities and global equities.”
