Volatile markets not putting investors off from equity dealing

Investors with private wealth appear to taking advantage of stock market volatility, which has been caused by the US's credit downgrade and debt problems in Europe.

Despite this, Alliance Trust Savings witnessed record equity dealing activity on August 5th, with the last record being set on March 15th.

The financial services provider saw a 61 per cent increase in equity dealing on August 5th compared to the previous record.

It was also found that 71 per cent of all the trades made on this day were 'buy' orders, as people with private wealth are seeing the volatile market as a good time for equity investments.

Steve Latto, head of pensions at Alliance Trust Savings, said: "When markets are falling it can be difficult for individuals to keep a long term outlook on their investments.

"Many of our customers are showing confidence in the long term value of equities despite current market volatility."

A recent study by the Association of Investment Companies found that long-term investments offer a better return on investment in times when the stock market is volatile rather than regular investments over a short-term.

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