Investors selling shares in response to cost-of-living crisis

cost-of-living crisis

The Shareholder Voice Report found that almost half (44%) of UK shareholders surveyed have cashed in their stocks in response to rising inflation and household bills

Panicked DIY investors are selling their shares to help get them through the cost-of-living crisis, according to new research from Equiniti (EQ).

The Shareholder Voice Report found that almost half (44%) of UK shareholders surveyed have cashed in their stocks in response to rising inflation and household bills.

Meanwhile, 46% of men said they would consider taking this route, while women were less inclined, with a slightly lower 41%. Investors aged 18 to 40 were also more likely to sell their shares than those aged 41 to 75.

This comes as the cost-of-living crisis has reached unbearable levels for many as a result of labour shortages, increased taxes and soaring energy prices. Of the 2,000 participants surveyed, nearly half said they ‘needed the cash’ to cope.

Men were more likely to adopt this approach (35%) while only 32% of women felt the same. Again, younger investors (18 to 40 year olds) were more likely to divest that those aged 41 to 75.

Thera Prins, CEO of UK shareholder services at EQ, said: Investors typically look to invest with a long-term horizon to build wealth but the current economic environment means a lot of people are being forced to rip-up their plans.

Inflation is at a 40 year high, which is putting immense pressure on household finances, therefore it is no surprise that many people are looking to make up the shortfall by selling out of their investments, she said.

Prins said it is important that investors who resort to dipping into their savings or investments to cover bills think about how they are going to replace those funds when the current pressure on finances subsides.

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