Investor confidence rebounded in May, fuelled by a pause in tariffs and opportunities presented by a fall in the markets, Hargreaves Lansdown’s latest data shows.
The Investor Confidence Index, based on a monthly survey of Hargreaves Lansdown’s clients, showed confidence in the UK jumped by 70% in May compared to April, while confidence in UK economic growth shot up by 85%.
There was also a sharp increase in confidence in Europe, up 55% from April.
The region that investors have the most confidence, however, is Japan, potentially as a result of the yen’s perceived status as a safe haven and the structural reforms which continue to come through in the market.
However, the survey found investors remain cautious on the US, with confidence up just 8% on the previous month.
Victoria Hasler, head of fund research at Hargreaves Lansdown, said: “After a terrible month in April, May saw a huge rebound in investor confidence. The pause in tariffs, combined with opportunities presented by the fall in markets, saw investor confidence rise across all regions in our survey.”
The most popular fund in May so far was the Artemis Global Income, although passives remain the most popular choice overall, with eight of the top ten funds being index trackers.
Within investment trusts, infrastructure found favour among investors, Hasler said.
“The outlook for infrastructure spending remains good given the Government’s net zero commitments and most infrastructure trusts pay an attractive income which, when combined with the large discounts at which they are trading, have made them popular with investors.
“The stalwarts of the investment trust world such as Scottish Mortgage and City of London Investment Trust also remain popular,” Hasler added.
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