Investors moving away from cash, says Virgin

Investors are moving out of cash and putting money back into stocks, according to the Virgin Money Investor Intentions Index.

Interviews carried out by George Street Research with 100 advisers in August showed only 7% of the interviewees now felt most confident about cash, down 11% from August 2008.

The percentage of IFAs surveyed advising their clients to invest in cash has also fallen significantly from 86% last year to 55%.

As sentiment to cash has fallen away, conviction towards British stocks has increased equally dramatically. Confidence in the asset class jumped 16% over 12 months to 45%, suggesting investors have been lured back after sharp rises in the FTSE since March.

Confidence in European stocks, however, appears to be waning, with only 70% of advisers recommending their clients to buy into the sector, down from 74% last year.

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