European equity markets will have to rise at least 50% before retail investors regain their appetite for stocks, according to a report from Schroder Salomon Smith Barney (SSSB).

In terms of profitability investors are sitting on losses from shares they bought during the bull market in 1999 and 2000. Unless the markets rise by at least 50% they will not be within sight of breaking even, according to SSSB. The bank's European Portfolio Strategist report said: "Lack of retail demand does not preclude a recovery of the equity market. However, it is unlikely that the equity market will revisit those highs without the support of the retail investor."