Saga: Outlook for investing in stock market

Roger Ramsden, chief executive, Saga Services, comments: "The last few months have seen a Bull run in the stock market. Whether buoyed by genuine confidence in the future of UK PLC or just correcting the "slough of despond" of recent months, only time will tell.

"But there is one consistent feature and that is that personal investors have traditionally been last to bail out of a falling market; and, having been stung by their losses are more hesitant to invest into the upswing.

"However, Saga Share Service customers have got their enthusiasm for investing back and we have seen significant investment inflows over the last few weeks. Over the last 3 months trades have increase by more than 50%. Within this increased level of activity we have also seen a higher proportion of people cashing in their shares - with sellers now accounting for 42% of trades up from 34% a year ago.

"Our view is that UK equities offer value to longer-term investors and that the US equity market has also responded positively to unprecedented levels of government stimulus. We think that US equities look likely to outperform the domestic bond and cash markets."