In a year marked by significant geopolitical events, UK investors are gearing up to increase their trading activity in response to anticipated stock market volatility.
Research from GraniteShares, a global issuer of ETPs managing over $7 billion, has revealed that 81% of regular stock market investors expect heightened volatility. The upcoming US presidential election and ongoing conflicts in the Middle East are seen as the primary catalysts.
GraniteShares’ study has underscored a proactive approach among UK investors, with 28% planning to ramp up their trading activities. This contrasts sharply with the 10% who intend to reduce their trading. As per the researchers, this trend suggests a growing sentiment that market volatility presents lucrative opportunities for savvy investors.
Will Rhind, founder and CEO of GraniteShares, said: “Investors have lived with stock market volatility for so long now that it is understandable that so many see volatility and the opportunities it creates as a reason to increase trading levels.” His insights reflected a broader investor mindset geared towards capitalising on market fluctuations rather than retreating.
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The research has further indicated that while 28% of traders plan to maintain their trading levels, 14% remain undecided on their course of action amid rising volatility. Interestingly, about 19% of respondents believe that market volatility will not increase, showing a divergence in market outlooks.
The US election, cited by 63% of respondents, is perceived as the most significant driver of market volatility, overshadowing other factors such as the Middle East conflict, which was noted by 56%. The possibility of a UK general election and the ongoing war in Ukraine were also mentioned, reflecting the complex interplay of global events impacting market sentiment.
In addition to geopolitical concerns, 6% of investors pointed to incidents related to climate change as potential volatility triggers, underscoring the multifaceted nature of modern market dynamics.
