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As proposed and impending regulatory changes loom over the UK equity market, alongside calls to abolish stamp duty on shares, Sociables Express believes we need to go further. While some hail these changes as liberating and advantageous, we are a little concerned and we hold a nuanced perspective. While welcoming deregulation and abolishing stamp duty on shares, we caution against the City becoming too dependent on government interference. Through insights gleaned from retail investors, Sociables Express concludes that these measures won’t necessarily spur increased retail investor capital in UK stocks.

The crisis at hand isn’t merely a matter of taxes and regulatory constraints; it’s rooted in deeper issues within the UK’s investment culture and the City’s marketing practices. Despite a burgeoning social media-based investment culture since January 2021, UK retail investors continue to shun domestic equities. UK retail investors are investing into stocks, they’re just not investing into UK stocks. Why is this the case? Because the allure of US stocks, European stocks, cryptocurrencies, property and alternative investments have overshadowed UK stocks. Sociables Express identifies a big problem in the marketing strategies of UK equities and the stock market. This problem is contributing towards the UK stock market being a deeply undervalued market. The City isn’t promoting or advertising the stock market to the average British investor, and it is failing to resonate with the evolving preferences and the risk appetite of British investors. The days of financial tabloid and TV are dying, social media is now King, Queen, and Joker.

How can the City expect retail investors to engage with the stock market without any advertising efforts? People don’t buy products they are unaware of.  

Addressing the crisis demands a holistic approach encompassing both market promotion and cultural transformation. The prevailing disinterest in UK stocks stems from a lack of effective marketing within the City, and it is failing to engage the average citizen. By fostering a culture akin to the culture within American retail investor circles, the UK can bridge the gap between millions of potential investors and the stock market, cultivating a vibrant investment culture that has subcultures within it. Promotion and cultural development will serve as linchpins in the broader strategy to revitalise the UK stock market. Supplementing these efforts with educational initiatives, rebranding, lobbying, investment scouting and a robust presence on social media can increase the number of investors participating in the UK market. Sociables Express also emphasises the need for rebranding the stock market, aligning it with contemporary values of inclusivity and accessibility. The new brand needs to be cool, modern, and for the many. Leveraging social media as a conduit for distributing this revamped brand is crucial in capturing the attention of the new generation of investors.

Rebrand the stock market, promote it over social media, and then construct an investment culture. This is the Sociables Express solution to solving the crisis.

Focusing on a cultural transformation is essential due to the recent societal shifts that have influenced investment behaviours. The digital age has democratised access to financial information and investment platforms, empowering individuals to take control of their financial futures. Social media platforms such as Reddit and Twitter have played a pivotal role in fostering burgeoning subcultures that are reshaping the landscape of traditional investing. These platforms have provided a space for individuals to share insights, strategies, research, and investment ideas. Cult stocks like Tesla, Apple and AMC have emerged as an element within this new culture, capturing the imagination and enthusiasm of retail investors worldwide. Bitcoin is one of many subcultures within the modern retail investor culture. Through online forums and communities, retail investors have coalesced around different investments, fuelling unprecedented levels of interest and trading activity. The accessibility of social media has empowered retail investors to challenge conventional wisdom, disrupt institutional norms, and exert influence on market dynamics. As a result, these platforms have become instrumental in shaping the narrative and driving the momentum behind retail investor-driven trends, marking a significant paradigm shift in the world of finance. Unfortunately the UK stock market hasn’t capitalised on this paradigm shift.

Social media has decentralised finance and investing. The modern retail investor culture exists only on social media.

The failure to adapt to the evolving retail investor landscape underscores broader challenges within the UK’s financial sector. As a retail investor relations company Sociables Express acknowledges the shortcomings of the UK investor relations industry, which currently prioritises institutional over retail capital. By failing to address the core question of why investors are shunning UK stocks, the City risks falling further behind and not taking advantage of the modern landscape. The City needs to understand that it’s still using obsolete practices and marketing strategies. Plainly speaking, the City needs to modernise its mindset.

Dear the Square Mile, please inquire why UK investors are shunning the UK Stock Market. The answer holds the key to the solution.

In summary, the crux of the UK stock market crisis lies not in taxes or regulatory intricacies, but in the realm of promotion and culture. Overcoming the crisis in the UK stock market requires a multifaceted approach that addresses structural, cultural, and marketing barriers. Sociables Express stands ready to collaborate with industry stakeholders to drive positive change and promote a more inclusive and vibrant investment landscape. Together, we can unlock the full potential of the UK stock market and create opportunities for prosperity and growth for all. Let’s sell the stock market to the many.

For further insights into our solution, interested parties are encouraged to contact us for additional information.

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