Investors remain cautious about the economy's recovery, according to new findings in a TD Waterhouse's Investor Confidence Survey.
The survey has found that 56 per cent of retail investors believe that the economy is not yet stable, while 45 per cent have responded to the downturn by adopting a more cautious investment approach.
TD Waterhouse also revealed that just over a third of the respondents are optimistic, believing that the UK economy is currently in recovery mode.
However, 36 per cent of respondents disagreed, saying that they think economy is W-shaped and that we are in a double recession, while a fifth said we are currently in an L-shaped depression.
Despite investors remaining wary of the current state of the economy, 60 per cent of the respondents said that they were satisfied with the performance of their investment portfolio in the past year – representing a 16 per cent increase on last year's findings.
In addition, 58 per cent of investors surveyed said they had more confidence in the UK stock market today than they did 12 months ago, with 33 per cent citing the low Bank of England Base Rate as biggest influence of stock market investment over the past year.
Commenting, Angus Rigby, CEO of TD Waterhouse, said: "It is interesting to note the mixed views regarding the shape of our economy, and it is clear that many investors do not think we are out of the woods just yet.
"The ongoing global turmoil has obviously given investors food for thought regarding their investment choices this year and it is encouraging to see that investors are still making profits despite adopting a cautious investment approach."
Looking ahead to 2010, nearly 40 per cent of investors indicated that saving for their retirement was a key concern for the New Year, while 35 per cent of investors – a decrease of seven per cent since last year, claim job security will be a key concern.
Mr Rigby suggests that more people being concerned about their retirement rather than their job security highlights the common view that the "long-term effects of the ongoing economic climate have yet to be realised".
© Fair Investment Company Ltd