Commodities and crypto out of favour with investors

Date: 24 Feb 2023

Vicente Luckina Bunn

Investors are seeking stability in the face of a looming recession, with 69% ranking risk as the most important factor when making investment choices.

Research published by UK law firm Michelmores reveals that investors are looking for safe places to put their money in the face of looming recession.

A survey by UK law firm Michelmores of 1,500 millennials, Gen X and baby boomers with over £25,000 in investable assets reveals that the cost of living crisis has changed investors’ attitude to risk and impacted the way people are choosing to invest their money.

Michelmores’ research, conducted in the two weeks following the FTX collapse, found that attitudes to the cryptocurrency gold rush are changing, with many investors becoming disillusioned with it as an asset class. The research indicates that investors are highly unlikely to buy into ‘riskier’ assets such as cryptocurrency in the coming year. However, a core contingent still views it as having potential, with 25% of millennials investing more than they did two years ago.

Just over half (51%) of respondents said that increased cost of living had decreased their appetite for risk to some degree in their investment choices. However, despite the greater avoidance of risk, only 17% describe their current financial position as ‘pessimistic’, while 40% say they feel ‘comfortable’.

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