Retail investors are backing Labour over the Conservatives at next week’s election, despite thinking the Tories will be better for the stock market, City A.M. can reveal.
38 per cent of UK investors said they’d be voting Labour, compared to 23 per cent for the Conservatives, according to a survey conducted by Finimize.
Despite a majority predicting the market to become more volatile after the polls close, most UK investors believed the value of their portfolios will actually rise after the election.
The survey, which interviewed over 3,000 UK and US investors, found that 76 per cent now believed the the global stock market will be higher in a year’s time, up from 74 per cent last quarter.
US investors had similar opinions to Brits on their own election, with more supporting the Democrats (47 per cent) over the Republicans (34 per cent), despite more believing a Republican win would be best for stock market performance.
Additionally, 38 per cent of all investors said they planned to increase their investments within the next three months, with stocks continuing to be the most favoured investment option, followed by ETFs and cash.
Optimism for bitcoin remained robust among those surveyed, but still saw a slight dip, with 61 per cent expecting its price to rise in the next year, down from 63 per cent last quarter.
Carl Hazeley, chief analyst at Finimize, told City A.M: “With record levels of optimism among retail investors, likely spurred by recent and further expected interest rate cuts, retail investor activity is showing no signs of slowing down for the rest of the year.
“Despite the upcoming elections in the UK and US, the data shows retail investors are taking a long-term approach and remain confident in the resilience of their portfolios.
“Over half aren’t planning to make significant changes before the elections take place (59 per cent of UK investors, 51 per cent of US) but are optimistic about the value of their portfolios after election season ends.”