Investors concerned with possible market crash

31 October 2007
A significant number of stock market investors are concerned about the possibility of a market crash, new research has revealed.

The survey by the Association of Investment Companies (AIC) found that 38 per cent of active investors believe a stock market crash is the largest threat to their finances, up from 36 per cent in February.

Meanwhile, the number of active investors stating that they would increase their investment during the coming months fell from 43 per cent in February to 33 per cent. The firm reported that a further 16 per cent would look to reduce their investment.

Annabel Brodie-Smith, communications director of the AIC, said that recent financial problems may have led to a dramatic fall in investor confidence, but this had not been the case.

"However, active investors are more cautious about markets going forward with a stock market crash being their biggest financial worry," she commented.

It is "important" that investors choose to take a long-term approach to investing, Ms Brodie-Smith added.

This week, Barclays Wealth reported that 66 per cent of investors claim they aim to invest in inexpensive stocks during periods of market instability.

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