Investors 'staying away from stock market'

Investors are shying away from putting their money into the stock market due to a lack of confidence in the likelihood of seeing a return.

This is according to new research conducted by Prudential, which shows that one in four savers in the UK - or 11.9 million individuals - are currently shunning equity investments.

As a result, the financial services provider is warning those who can afford to save money that by ruling out the stock market, they are risking losing out on long-term benefits.

’Investors often act irrationally and driven by fear they sit out the markets as they begin to recover, missing out on some potentially spectacular gains,’ explained Trevor Cheal, retirement savings business director at Prudential.

These statistics from the organisation come after the chief economist of the British Chambers of Commerce David Kern said that the recent lack of interest from foreign investors in the UK is hardly surprising at present, due to the economic situation.
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