According to research commissioned by J P Morgan Fleming, the confidence of investors is at the lowest point since the tragic events of September 11.
When questioned, 42% of people felt that the stock market could be at an even lower level in six months time. Only 22% thought it would be higher.
When asked about the results of this confidence survey Peter Brewster, head of market research at Fleming said "this uncertain environment also represents a valuable buy opportunity for investors, with many quality shares trading at extremely low valuations. The question is whether investors have the courage to buy when signs of market recovery seem so few and far between".
Our view:
Stocks and shares always carry a degree of risk and should be held at least over the medium to longer term. Markets always move in cycles but this one has been made worse due to the threat of terrorism and war. I believe we will see more positive market returns once the question over war is answered.