investor insights december 2016

How investors react to volatility and uncertainty

Articles | 12 December 2016

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Over the first half of 2016, market volatility and political uncertainty has driven cautious behaviour from investors, with a clear distinction remaining between the investment decisions of younger and older non-advised investors. These events appear to have increased investor interest in their overall asset allocation, however, risk off activity does not necessarily drive the best investment outcomes.

To delve deeper into the factors contributing to these sentiment swings, we introduce some new measures of investor activity and conviction, analysing the proportion of investors who transact in any one month against the percentage of account turnover.

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