Is the Green Agenda a Top Priority for Markets in 2020?
Renewable energy has become the top investment sector for UK investors with almost a third of investors (30%) regarding it as the sector they would actively put their money into for long term gain.
With UN Secretary-General Antonio Gutterres warning that climate change is about to reach a point of no return - and with Boris Johnson and Nigel Farage empty-chaired for Channel 4’s climate change debate in Novermber – new research suggests the green agenda is gripping the UK investor community. Renewable energy is now a top investment choice for investors of all ages; it is equally popular with men (29%) and women (31%) and it also transcends investment philosophy. For example, active traders, those that are simply looking to make an opportune gain, place as much emphasis on renewables as those investors that act with a specific ethical investment philosophy (33% and 36% respectively).
At a time when the general election and protracted Brexit delays are casting a cloud of uncertainty over what lies ahead in 2020, GraniteShares research suggests economic and political events have powered a greater sense of conviction among investors, with 76% seeing clear investment opportunities to capitalise on. Further, more than a third of UK investors (37%) identified as being in control of their investment decisions, acting with conviction.
Given this UK appetite to amplify their investment edge, GraniteShares asked a nationally representative sample of 1,560 UK investors which sectors they would put their money into if they were looking to make a long-term gain over the next year. After renewables, the most popular sectors were technology (28%), property (25%), and gold (22%). Technology was most popular with younger investors aged 25-34 (31%), whereas property was most popular with the over 55s (33%). Gold was evenly popular across all age groups, a top choice with around one in five investors.
In addition, pharmaceuticals and biotechnology were particularly popular with over 55s (36% and 23% respectively), cannabis was most popular among the over 40s (20%) and oil and gas was top choice among the 25-34s (17%).
With recent warnings that UK car production could plummet with a non-deal Brexit and bleak warmings of the health of the high street for the crucial Christmas season, retail (8%) and auto (7%) along with industrials were the sectors that investors were least interested in putting their money into. With all these sectors, it was older investors (over 45) that were walking away and investing their money elsewhere.
The sectors UK investors would put their money into if they were looking to make a long-term gain over the next year (by age group)
| Investment sector | Total | 25-34 | 35-44 | 45-54 | 55-64 | 65+ |
| Renewable energy | 30% | 31% | 26% | 33% | 35% | 33% |
| Technology | 28% | 31% | 22% | 32% | 30% | 29% |
| Property | 25% | 21% | 31% | 26% | 33% | 28% |
| Gold | 22% | 23% | 21% | 26% | 27% | 10% |
| Biotechnology | 19% | 20% | 16% | 18% | 23% | 22% |
| Pharmaceuticals | 19% | 16% | 17% | 22% | 36% | 25% |
| Cannabis | 17% | 16% | 17% | 20% | 18% | 14% |
| Oil and Gas | 14% | 17% | 15% | 11% | 10% | 15% |
| Banks and Insurance | 14% | 14% | 13% | 9% | 13% | 11% |
| Crypto-Currency | 13% | 20% | 14% | 11% | 3% | 5% |
| E-Commerce | 12% | 14% | 10% | 9% | 15% | 6% |
| Utilities | 11% | 11% | 12% | 10% | 10% | 7% |
| Mining | 9% | 12% | 4% | 8% | 7% | 11% |
| Retail | 8% | 10% | 8% | 5% | 3% | 5% |
| Industrials | 8% | 9% | 3% | 6% | 6% | 7% |
| Auto Industry | 7% | 9% | 10% | 4% | 7% | 4% |
