When the crisis broke out a lot of investors – individual or institutional decided to stay on the sidelines for fear of incurring losses on their investments. But according to a report WSJ report, individual investors are still putting their money into currencies and that is investment class where the crisis is not so much felt.
From the report:
The collapse of Lehman Brothers had no negative effect on individual-investor currency traders, but presented more opportunities. This has been the product of historically high levels of volatility in exchange rates and new technology that has offered an alternative to stocks.
Matthew Wright, the regional director of Forex.com, an online currency trading platform, said: As a result of the financial crisis, retail investors have lost faith in the stock markets and are unhappy with low interest rates on savings.
See the report HERE.