Investor confidence increases as they look to maximise on interest rate hikes and an unstable stock market

Research by peer-to-peer real estate investment platform, easyMoney, has revealed that investor confidence has grown since Q1 of this year, as investors look to take advantage of a shaky stock market while also benefiting from strengthening interest rates from additional avenues such as ISAs.

easyMoney’s gauge of investor confidence asked how confident they were that they would see a return on their investment portfolio this year.

29% of respondents answered that they were ‘very confident’ up from 23% in Q1, while 42% were ‘somewhat confident’ marking a 10% increase on the previous quarter.

Little has changed in respect to the makeup of their portfolio, with stocks and shares remaining the most prominent avenue of investment, followed by ISAs and bonds.

In terms of concerns, the current level of inflation topped the table, along with rising interest rates, while the cost of living crisis also remained a worry.

However, with interest rates on the rise, the majority stated that they had opted to increase their investment in ISAs, while many have also upped their investment into stocks and shares to take advantage of an unstable stock market.

This increased confidence is also clear when asked how they plan to proceed over the year ahead, with 40% stating they would invest further, up 11% on the start of the year. There has been just a 1% increase in those who plan to keep their portfolio as is, while the number of those looking to reduce it has declined by -12%.

Again, ISA investment and stocks and shares remained the avenue of choice for those with plans of investing further over the year ahead.

Jason Ferrando, CEO of easyMoney said, “Uncertain times often present plenty of opportunities and it seems as though the nation’s investors are keen to capitalise on the landscape we currently find ourselves in.

While many are doing so via a somewhat wobbly stock market it does provide a heightened degree of risk, but ISA investment is also proving a very popular choice in order to bring balance and certainty as interest rates continue to climb.

The range of ISAs available mean that many investors can tailor their portfolio to suit their individual needs, taking advantage of some very strong rates at the same time.”