Massive Outflows from Stock Markets in October and November

Data from Calastone and the Investment Association has signalled a massive sell in UK equities in the last two months in the run up to the UK Budget combined with concerns for an AI bubble about to burst.

Calastone records show that £3bn UK equities were sold off of October/November, contiinuing the trend of the last 6 months, with nearly £10.5 billion sold off (a record).  In addition, the Investrment Association reported £4.3bn is equities sold off.

Surpisingly though, UK stock markets have ‘held up’ as foreign investors see some recovery in the UK in 2026 and so are buying in to keep prices up when UK investors are locking down profit.

Comment

We have been suggesting for many months in our Weekly Traffic Light Alerts that clients may wish to lock in profits ahead of any volatility, correction or even a crash and move those profits into defensive postions such as cash or fixed interest/bonds/gilts.

US markets are also suffering the same on continued fears of an AI bubble about to burst.

We remain happy to have suggested to clients that they lock in gains (some 30% ove the last year), and hold those gains in reserve as ‘opportunity funds’ just in case there is a correction or crash.