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Investors will remain cautious, says expert

Investors will remain cautious, says expert
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The early part of 2010 is likely to see investors remain cautious, an expert has suggested.

Dean Cheeseman, head of multi-manager funds at F&C Investments, explained that many stock market traders will be hesitant to part with their money.

As the economy recovery gains momentum, he noted, asset prices will move up, but remain volatile.

"Some investors will now be looking to lock in gains made through the latter stages of 2009, while those who have sat on cash will psychologically struggle to commit money to markets," said Mr Cheeseman, adding that anyone who has missed out on upward ratings is likely to be reluctant to invest before a potential major correction.

The specialist went on to suggest that the pattern of the stock market's recovery from the events of 2008 has been surprisingly normal.

Tom Ewing of Fidelity International recently observed a strong performance of UK companies despite the recession, adding that the stock market represents significant potential.

Posted by Greg SeckerADNFCR-1681-ID-19584347-ADNFCR