Investor confidence in the stock market is still high despite market volatility.

According to new research from Barclays Stockbrokers, share dealing is still the top choice for generating the best returns.

Their study revealed that 65 per cent of investors would still put their confidence in shares; 17 per cent would opt for commodities for the best returns in 2009.

However, some investors are planning to be more cautious over the coming year, with 15 per cent saying they will opt for gilts and investment bonds as their preferred investment vehicle, the remainder would go for structured products.

Barbara-Ann King, head of proposition at Barclays Stockbrokers says it is encouraging that recent financial turmoil has not deterred investors from share dealing as an investment option.

“Despite the market volatility experienced over the past year it is encouraging to see our clients retain their confidence in the stock market for this year, with nearly two thirds predicting shares will generate the best returns of all asset classes in 2009,” said Ms King.

She continued, “Nearly one fifth of investors put commodities in the front line for returns, recognising the opportunities in this sector,” but realised that some investors are less optimistic about stocks and shares.

“Not all clients are so bullish for the year though,” she said, “15 per cent remain more cautious believing lower-risk gilts and bonds will offer the best returns this year.”

© Fair Investment Company Ltd