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Investors go bargain-hunting during market volatility


* Two thirds of Barclays Stockbrokers investors look for bargain stocks during volatile times*
* Almost one in ten investors will trade CFDs / FSTs during market volatility

During the recent stock market turmoil, investors have been revealed as true bargain-hunters, say Barclays Stockbrokers. A surprising two thirds of investors (66%) confirm they look to invest in inexpensive stocks during market volatility. Investors are also increasingly diversifying during volatility, with almost one in ten (8%) trading CFDs or financial spreads during these times. The findings come as Barclays Stockbrokers clients maintain their high levels of buying activity, with the buy: sell ratio for trades last week standing at 51 : 49**. Naturally though, some investors do remain cautious; over a fifth (21%) claim they will wait for the storm to pass during volatility, and 5% of investors plan to move to (or stay in) cash. Tom Ryan, Director of Barclays Stockbrokers says: “During recent periods of market volatility we have found that investors are increasingly looking for opportunities in the market. Investors are viewing market volatility as an opportunity to invest in cheap stocks and take advantage of the turmoil. Traditionally in times of volatility, private investors have shied away from the markets. However with transparent information readily available and new tools such as level 2 pricing leveling the playing field, the self directed investor of 2007 clearly is taking charge during uncertain markets and looks for buying opportunities.”

Henk Potts, Equity Strategist, Barclays Stockbrokers: “While some investors have clearly been spooked by the market turmoil that took place during the summer, it is encouraging that for the vast majority the recent weakness represents an opportunity. We believe the underlying medium-term picture looks much brighter than current valuations suggest and anticipate that shares will rise 15% over the next 12 months. Global growth remains strong, corporate profitability growth should bounce back in the fourth quarter and company balance sheets still look healthy.”


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