Retail investors are losing confidence in the government, with only 27% of those surveyed believing in the current Tory economic policy.
A survey commission by HYCM, an online forex and CFD broker, found that of 721 UK-based retail investors with investments over £10,000 it surveyed, only 30% believed Jeremy Hunt is the right person to be Chancellor.
“After a turbulent six months in UK politics, the financial markets have seen unprecedented levels of volatility,” said HYCM chief market analyst Giles Coghlan.
"Three prime ministers, four chancellors, a disastrous mini-budget, and inflation still surging despite successive interest rate hikes – HYCM research shows UK investors are suffering a crisis of confidence in the Government."
Even so, only 21% have shifted their investment strategy to more stable assets, such as gold or bonds despite some wild swings in asset prices.
“Interestingly, around four in five investors (79%) are not planning on decreasing their holdings in stocks and shares investments, despite the threat that raging inflation poses to their portfolios,” Coghlan said.
Looking ahead to 2023, HYCM found that 37% of retail investors are more likely to diversify their investments to ensure they can perform well in a range of potential scenarios.
“Although things have somewhat calmed since Hunt delivered his Autumn Statement, many investors would still benefit from exploring their options – whether this means looking to safe-haven assets or diversifying their investments to boost their returns as the UK weathers a recession,” Coghlan added.