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Investors sell Euro and buy gold as Euro crisis fears increase | Financial Reporter

Investors sell Euro and buy gold as Euro crisis fears increase

The euro crisis has overtaken inflation as UK investors’ top financial fear, according to a barometer of investor sentiment from financial marketing specialists dianomi.

Millie Dyson
7th September 2011
Investors sell Euro and buy gold as Euro crisis fears increase
From a panel of over 1,750 UK investors, 26% cited the euro crisis as their top current fear rising from only 9% in January.

Meanwhile, inflation has dropped from being the number one fear in January to the number three fear after recession. Fear of unemployment has also dropped from 15% to 9%.

The research also investigated which asset classes and sectors are proving most attractive to UK investors in the current climate. Investors are increasingly buying gold and silver while selling gilts and corporate bonds.

There appears to be less demand for equities (especially growth stocks), property and alternative investments.

For the first time, as many investors reported buying 'gold & silver' as buying 'equity income' products Investment demand for all sectors has fallen except Pharmaceuticals and Utilities, which have increased.

The biggest drops were in Europe, Retail, North America and Financials.

dianomi also investigated the preferences of UK investors when it comes to foreign currency. Investors appear very negative on the euro with almost half (48%) describing it as a sell.

They also appear negative on the US dollar while very positive on the Swiss franc, Australian dollar and Canadian dollar.

Cabell de Marcellus, co-founder of dianomi, comments:

“As the euro crisis deepens, UK investors appear to be shifting away from the euro and moving to defensive options like gold, silver and the swiss franc.

"They also appear to be buying pharmaceuticals and utilities and selling European equities, retail, North America, financials and other sectors.”

dianomi is setting new standards in customer acquisition services for the financial sector and its mass affluent audience. dianomi’s client list includes blue chip financial services brands including St. James's Place, Fidelity, CMC Markets, Henderson Global Investors, Hargreaves Lansdown, Aberdeen Asset Management, Investec and many more.
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