In the last two months the stock market has seen investment of billions of pounds from private investors, reports Reuters.
Capita Registrars Private Investor Watch recorded that £999 million was invested into equities during the months of August and September.
John Roundhill, a director of Capita Registrars, told Reuters: "Private investors had been positioning themselves for a stock market correction all year - and they were proved right.
"From their early summer peak, share prices fell a massive 13 per cent by the middle of August."
Though the correction was "short-lived", private investors quickly took the opportunity to re-invest, added Mr Roundhill.
Meanwhile, Asian stocks have plummeted recently in the wake of Wall Street's continuing marked slowdown.
Recent disruption in the credit industry, which was sparked by the sub-prime crisis in the US has resulted in investors exercising caution across the board.
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