Nearly one in three (31%) UK investors do not feel confident about the prospect of positive returns this year, a survey indicates.
Two-fifths (38%) of investors with more than a decade’s experience agree they lack confidence in the investment outlook, according to the research for digital wealth manager Nutmeg – owned by JP Morgan.
More than half (52%) of investors surveyed believe economic uncertainty is one of the top risks their investments face in 2025, followed by market volatility (41%) and political risk (28%).
The research was released amid concerns for the British steel industry after President Donald Trump slapped a 25% tax on US imports.
Business Secretary Jonathan Reynolds has said the global tariffs on steel and aluminium imports were “disappointing”.
The European Union has responded with countermeasures on US goods.
James McManus, chief investment officer at Nutmeg, said: “For UK investors this Isa season, there’s plenty of factors weighing on their mind: a new administration in the US, changing geopolitical risk and economic uncertainty at home. The truth is, to greater and lesser extents, all of these will impact how markets perform this year, the level of volatility we see, and the returns investments will deliver.”
He added: “While past performance is never a guarantee of future performance, history shows us that by taking a global approach and diversifying your portfolio, investors may mitigate market-specific shocks or volatility and still benefit from growth where it’s available.”
Some 1,000 UK investors were surveyed by Opinium in January for the research.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “As the ‘Trump bump’ has turned into a slump, investors are bracing for fresh volatility ahead. The impact of tariffs is front of mind.”
