Rebuilding after the bubble

The UK’s investment culture has never returned to its pre-dotcom crash peak, according to new analysis from Fidelity International.

Today, households invest significantly less than they did at the height of the late 1990s boom — despite more than two decades of market growth. Instead, a record share of wealth is now held in cash.

If households allocated the same share of their wealth to investments as they did back then, it could mean an extra £414 billion flowing into markets — money that could help grow both personal wealth and the wider UK economy. The findings form part of Fidelity International’s new report, Rebuilding after the bubble, which examines how the dotcom crash may have reshaped UK households’ willingness to invest.

The report also looks at what happens when people step out of the market during downturns — and why staying on the sidelines for too long could come at a much higher cost, alongside practical insights from behavioural experts on how to build confidence and get started.

Important information: investors should note that the views expressed may no longer be current and may have already been acted upon. This information is not a personal recommendation for any particular investment.  If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.