DUBAI // People struggling with the economic downturn are pulling their money out of investments and putting it in more secure savings accounts, financial advisers say. The result has created more business for the financial advisers helping them decide where to put their money, experts say. The adviser Joe Capaldi, for example, said that this year - his 37th in the business - had been his best so far.
"The last bad, bad recession was in 1974 when in the UK we had a three-day week, there were power cuts, there were all sorts of financial problems," he said. "The stock market fell by over half in a 10-month period. "In times like that, people start to recognise the importance of having some money put aside for a rainy day. They wish they had saved more. In my business, I'm afraid, it does actually help business. I'll be honest; I'm having a record year."
Some of Mr Capaldi's clients, most of whom work in the legal sector, have been forced to withdraw some savings. Others lost jobs. That has made clients more hesitant about the long term, but has made life insurance and savings plans big business. Stuart Birch, a financial consultant with Acuma in Dubai, said people were going back to basics. "When the global market was doing well, property was going up and people wanted a slice of that growth and success," he said. "Whereas now, while that may still be very important, the fundamentals are too. Do you have a will in place? What are you doing with your cash and savings?"
Although people are still investing, Mr Birch said, they are taking fewer risks. "It's the short-term needs that have changed," he said. loatway@thenational.ae
