New research has found that
equity trading volumes are on track to hit their lowest point,
relative to the value of the market, since 2002.
According to data from
investment services firm Equiniti, this is primarily due to
investors remaining cautious about the state of the
economy.
Based on the levels of
trade transacted so far this year, the research estimated that
2.5 trillion pounds would change hands over the course of
2010.
On a historical comparison, the 2000s look unusual, the
report explained.
Throughout the 1990s, in the aftermath of the UK's last
recession, an average share worth 0.78 times the value of the
UK market changed hands each year. In the 1980s it was 0.63
times.
Meanwhile, Patrick Connolly, head of communications for the
independent
financial adviser AWD Chase de Vere, claimed recently that
Britons who are considering
investing their
money in assets can minimise the risks by spreading it across a
diversified portfolio.
Mr Connolly explained that
savers are in the very difficult position of
choosing between often sub-inflation
interest rates and more
risky investment options.
