What You Have to Know
- Sixty % of advisors surveyed stated their purchasers have been most frightened about market volatility.
- Moreover, almost half of advisors stated their purchasers have been extra frightened than ever about volatility.
- This presents a chance for advisors to assist their purchasers via difficult occasions to realize extra purchasers.
Fifty-three % of economic advisors in a brand new survey count on the S&P 500 to realize at the least 10% by year-end, whereas 36% stated the inventory market shall be flat from the place it was in late February, InspereX, a brokerage agency, reported Tuesday. Solely 11% of advisors count on this yr’s market returns to be detrimental.
Barely greater than half of survey contributors stated a protracted bull market in equities will begin in 2023. Advisors have turn out to be more and more assured concerning the U.S. economic system, now score their confidence at 6 on a scale from one to 10, up from 5 in June 2022.
Requested which asset courses would carry out finest this yr, 48% of advisors stated equities, 17% stated bonds, 9% stated money and money equivalents, and eight% stated different property. A mere 1% talked about cryptocurrencies.
“If 2022 wasn’t difficult sufficient for inventory market buyers, this yr has been a ‘gotcha’ market — each time you begin to really feel assured, volatility reappears,” Christopher Mee, head of market-linked merchandise distribution at InspereX, stated in an announcement.
Nonetheless, Mee stated, many advisors see potential for affordable market positive factors and are trying ahead to a brand new bull market. “The query is, do their purchasers share their religion out there after final yr left so many consumers extra frightened now than ever about volatility?”
Crimson Zone Advertising performed the survey on-line in February amongst 705 advisors from unbiased broker-dealers, banks and RIAs.
Views on Volatility
Sixty % of advisors surveyed stated their purchasers have been most frightened about market volatility, whereas 33% cited inflation as their foremost concern. Solely 5% of advisors stated their purchasers have been most frightened about rising rates of interest, and simply 2% stated rising taxes.
Not solely are purchasers frightened about volatility, 49% of advisors stated their purchasers have been extra frightened than ever about it. Sixty-two % of advisors imagine their purchasers aren’t almost as comfy with threat as their threat tolerance signifies.