Investors are shunning the US in favour of Europe and the UK, new analysis from Hargreaves Lansdown has shown.
The data revealed a sharp drop in confidence in North America ( -17%) in March, but a significant jump in confidence in Europe (+48%) and the UK (+16%).
Hargreaves Lansdown said confidence in UK economic growth also increased by 45% among Hargreaves Lansdown clients.
Victoria Hasler, head of fund research at Hargreaves Lansdown, said: “After a turbulent couple of months following the inauguration of a new president in the US, Hargreaves Lansdown clients’ investor confidence took a dramatic U-turn in March.
“Confidence in North America, previously the most-loved area by investors, plummeted by 17% as HL investors baulked at the impact that some of the new president’s policies appear to be having on markets and sought diversification elsewhere.”
Hasler said that after a difficult few months, investors seem to have faith that the political situation in the UK and Europe is settling down, leading to growing confidence in the regions.
Meanwhile, confidence among investors has also increased in both global emerging markets and Japan, although by smaller amounts. Investors continued to favour global funds in the first few weeks of March, with six of the top ten funds investing globally, of which the majority were passive, the firm said.
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