New research indicates that 81% of regular stock market investors foresee heightened volatility this year, driven primarily by the upcoming US Presidential election and ongoing conflicts in the Middle East.
The study from GraniteShares, a global issuer of Exchange Traded Products (ETPs) managing over $7bn, reveals that UK investors are gearing up for increased trading due to expected volatility in global stock markets.
Despite concerns, many UK investors view this volatility as an opportunity, with 28% planning to increase their trading activities, compared to just 10% who intend to reduce their trading.
Additionally, 28% of traders plan to maintain their current trading levels, while 14% remain undecided on their response to the anticipated market fluctuations. Only 19% believe volatility will remain unchanged.
The US Presidential election is identified as the primary catalyst for market volatility by 63% of respondents, followed by 56% who cite the Middle East conflict.
Other factors include the war in Ukraine (33%) and climate change-related incidents (6%).
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.
“With around half the world’s population voting in elections this year, there are likely to be shocks that can lead to extreme stock market reactions, and the US Presidential election is obviously the most closely watched.”
