Monday, 14 June 2010

A frenzy of DIY investment

There was an interesting piece in the Financial Times on Friday entitled Investors opt for DIY over advisers, citing various recent surveys showing a significant rise in execution-only investing. Given many people's poor experience of IFAs - dating back well before the market crash - this is not particularly surprising and hearteningly rational.

The worrying bit is the observation that online investors are ‘making 3x as many share trades as 18 months ago’: maybe the FT’s headline should say “Now retail investors churn their own portfolios so IFAs don’t have to.” Let's hope we've all learned to buy at the bottom and sell at the top.

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