Turmoil in stock markets around the world has led financial advisers to recommend 'safer' bonds to clients.
The flight to safety among Britain's investors caused by the recent stock market turmoil has led many to put their money into bonds, a new survey of financial advisers has indicated.
Virgin Money found that confidence in bonds among the professionals has grown from 68 percent to 83 percent since last June. However, every other investment sector was found to have suffered a decline in confidence among financial advisers over the last three months.
Continuing turmoil on the stock markets and stagnation in oil prices has led to reductions in investor confidence in equities and commodities. The Virgin Money advisers' poll also showed that emerging markets have also been hammered by a drop in adviser sentiment of over 30 percent.
The numbers seem set to fall still further in the near future, due to the latest global stock market declines. Earlier this week, the FTSE 100 hit a six-year low, while US stocks fell to a level not seen since the mid-1990s.
Grant Bather, spokesman at Virgin Money, said: "Confidence has been hit hard and advisers are focusing on protecting clients' cash and battening down the hatches. The only sector where there is sign of growth is in bonds where advisers are finding opportunities to give clients a degree of protection from stock market volatility as well as the possibility of growth and the chance to enhance income.
"Bonds are the only beacon in the gloom."
