Three fifths (61%) of DIY investors are concerned about their investments not recovering following the ongoing conflict in the Middle East, according to new research from Charles Stanley Direct.
This was particularly true for female investors, with 68% expressing concern compared to 55% of male investors.
The research also highlighted a number of other concerns investors have regarding the Iran war. Seven in 10 (70%) are concerned about the geopolitical risks that may unfold, while 59% are concerned about knowing what level of risk they should be taking with their investments and the same number (59%) are concerned about knowing whether they should be holding their nerve with the investments they have.
A similar proportion (57%) also expressed concern about missing the investment opportunities that the conflict in the Middle East presents. The research looked at where investors are looking to increase or decrease their investment exposure as a result of the conflict, with energy (43%), technology (43%) and AI (42%) the top assets where investors are looking to increase exposure.
Meanwhile, just over half (51%) of investors are worried about not having the right advice in place, supporting them in their investment decisions, while 49% are worried about knowing how to change their investment portfolio. Almost three fifths (58%) of DIY investors are also concerned there may be delays to further interest rate cuts from the Bank of England.
Rob Morgan, chief investment analyst at Charles Stanley Direct, said: “Knowing what to do when geopolitical crises arise can be difficult, particularly when markets are moving quickly. Oil shocks in particular can be exceptionally challenging for markets. Almost every business relies on energy in some way, so when oil and gas prices rise, they push up the cost of goods and services across the whole economy, dampening activity and eating into corporate profits.
“The key variable is duration. If disruption is short-lived, then the impact on growth and markets will likely fade. A drawn‑out conflict could lead to something closer to an energy shock, with higher inflation, weaker growth and more financial turbulence.
“It’s crucial to remember though, that investing is for the long-term, and portfolio decisions should be made with a diversified approach. The best course of action during market volatility is usually to sit tight. Market timing – especially during geopolitical crises – is notoriously difficult. Unless your portfolio is heavily concentrated in a single sector or region, the ups and downs should be manageable.”
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