A majority of US financial advisors are heading into the second half of 2025 with confidence in the equity markets, even as clients express heightened caution amid ongoing volatility.
That’s according to new survey findings from InspereX, which captured sentiment from 829 financial professionals across multiple channels.
InspereX’s 2025 Advisor Pulse Outlook Survey, conducted in May, revealed that two-thirds of advisors (67%) believe the S&P 500 will be up at least 10% by year-end, relative to where it was during the survey window – hovering between a low of 5786.08 and a high of 5968.61.
Among all advisors, 6% foresaw a 20% gain, while 1% project a rise of more than 20%.
For 49% of advisors, equities were the odds-on favorite for top-performing asset class for the year – probably not a bad bet considering the S&P 500's strong performance in 2024 – with gold (14%) and cryptocurrencies (11%) trailing distantly.
But no one's expecting smooth sailing to the finish either, with equities (44%) and crypto (36%) also ranking as the asset classes most likely to experience marked volatility.
That's not a trivial point, given clients' apparently increased skittishness around volatility. Forty-two percent of advisors said their clients’ biggest fear is a market crash or loss of principal. That was followed by political or economic uncertainty (34%), and outliving assets in retirement (8%). All in all, only 8% said their clients appear mostly calm.
Advisors reported that clients’ tolerance for risk is also shifting. Two-thirds (66%) said clients have become more risk-averse, and just 7% said clients are becoming more risk tolerant. More than one-quarter (28%) of advisors said clients have already postponed a major life goal due to market conditions, while 52% indicated their clients were concerned about potentially having to do the same.
Notably, 76% of advisors said they are discussing market volatility with clients at least once a month, a signal of how central the topic has become in ongoing planning conversations.
Periods of market turbulence may be unsettling for clients, but many advisors view them as a business opportunity. Sixty-nine percent said volatile conditions provide the “best time” to demonstrate their value. Just over half (54%) reported receiving more referrals or prospect inquiries during volatile periods.
“Advisors are optimistic about equity market returns in the second half of the year but understand recent severe volatility has rattled their clients,” Chris Mee, managing director at InspereX, said in a statement on Monday. “This is the ideal time for an advisor to demonstrate the enormous value they provide.”
That value appears to extend beyond immediate portfolio management. Nearly one in five advisors (20%) said severe market volatility has led to more engagement from the adult children of clients, particularly regarding how their parents’ investments are being handled.
Despite market uncertainty, most advisors are standing firm on portfolio allocations. Sixty-four percent said they have not made major changes in the past six months, and 88% believe their investment approach has successfully protected client assets through recent volatility.
Use of downside protection strategies is also increasing. Thirty-nine percent of advisors said they are currently using such strategies, and 55% said they are ramping up usage, often in response to client requests. Four in ten advisors said clients are specifically asking for portfolio buffers.
Among the top strategies recommended: annuities (69%), structured products or market-linked notes (54%), cash alternatives (50%), buffered ETFs (42%) and market-linked CDs (33%). Advisors said they are deploying these tools to reduce or eliminate risk exposure (33%), provide peace of mind (33%), improve the investment experience (19%) and target defined outcomes (15%).
Mee said that demand for protection strategies will likely remain elevated. “Downside protection strategies are keeping investors in the market during this period of heightened uncertainty,” he said. “We expect demand for these strategies will be strong for the foreseeable future.”
In response to shifting attitudes, 80% of advisors said they are conducting or planning to conduct new client risk assessments. Even as they respond to rising anxiety, 96% said they feel confident telling clients, “You’re going to be okay.”
The survey captured input from advisors working at RIAs, independent broker-dealers, banks, regional firms and wirehouses. It was conducted between May 12 and 19, during which the S&P 500 traded between 5,786 and 5,969.
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