More than a third of DIY investors say their risk appetite has increased since Sir Keir Starmer’s resignation, according to new research from Charles Stanley Direct.
Following his resignation on 22nd June, Starmer’s departure from Downing Street will see the UK welcome its seventh prime minister in a decade, with Andy Burnham expected to step into the role next week.
For 36% of DIY investors, their risk appetite has increased since Starmer’s resignation, with 10% stating that their risk appetite has increased significantly, while for 26% it has increased somewhat. This was most pronounced among Gen Z investors, with 52% saying their risk appetite has increased, followed by millennials (50%).
However, the majority (55%) said the Prime Minister’s resignation had not affected their attitude towards risk at all, while 9% said their risk appetite had decreased.
Rob Morgan, chief investment analyst at Charles Stanley Direct, said: “While some investors report a greater willingness to take risk, this should be viewed primarily as a reflection of broader sentiment rather than a clear shift in investment behaviour. Political change can sometimes be perceived as creating new opportunities or a more favourable backdrop for economic growth, which may explain why some investors feel more confident about taking on additional investment risk.
“However, our research shows that most investors have remained unchanged in their approach. Investors have largely continued to diversify their portfolios and focus on long-term objectives rather than making significant changes based on short-term political developments.
“While a new Prime Minister may bring changes in fiscal policy, marked changes to taxation or other policies affecting personal finances rarely happen overnight and usually come with a long lead-in time. Any shifts in portfolio decisions should be made rationally and there is likely plenty of time to assess any consequences, good or bad, that fall out of a change in political leadership.”
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