Advisers big on stocks, survey finds

Financial advisers have had their fill of bonds but have a hunger for stocks, according to the results of a January survey released by The Charles Schwab Corp. last Monday
MAR 13, 2011
Financial advisers have had their fill of bonds but have a hunger for stocks, according to the results of a January survey released by The Charles Schwab Corp. last Monday. Nearly two-thirds of those surveyed said that interest rates and inflation will rise. As a result, just 6% of advisers said that they are likely to invest more in fixed income — the lowest level since January 2007, when Schwab began its adviser surveys. “Six to 12 months ago, advisers were loading up on fixed income,” said Bernie Clark, head of Schwab Advisor Services. “The fact that they don't want more simply means they've probably reached the peak of their allocations.” Six months ago, in the Schwab July survey, just 28% of advisers said that they thought inflation would increase, compared with 64% now. Likewise, in July, just one in five said they thought that the Federal Reserve would raise interest rates, but now 29% expect a Fed-fueled rise. Exchange-traded funds remain the top investment vehicles to which advisers are likely to turn, and Mr. Clark said that he thinks that some fixed-income ETFs have been used as cash substitutes. Advisers have also grown more bullish on stocks. In January, 77% said that they expected the S&P 500 to rise in the next six months, up from 63% in July and 65% a year earlier. The survey is based on responses from more than 1,300 independent Schwab-affiliated advisers. E-mail Dan Jamieson at [email protected].

Latest News

Carson Group adds $236 million California team in latest deal
Carson Group adds $236 million California team in latest deal

Omaha-based RIA expands Northern California footprint with Roseville acquisition amid record annual pace for wealth management M&A.

Envestnet expands tax-management push with Vanguard alliance
Envestnet expands tax-management push with Vanguard alliance

Advisor's Alpha framework joins Envestnet's platform, giving advisors new tools to manage client tax exposure year-round.

Russell Investments to be acquired by B Capital-led investor group
Russell Investments to be acquired by B Capital-led investor group

B Capital and pension giant CalPERS lead a consortium buying the 90-year-old asset manager from TA Associates and Reverence Capital Partners.

AI use reshapes advisor satisfaction and deepens client trust, separate studies reveal
AI use reshapes advisor satisfaction and deepens client trust, separate studies reveal

Using artificial intelligence can have benefits for both advisors and their clients, according to new research.

Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface
Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface

Broker-dealers that sold the defunct securities backed by Inspired Healthcare generated more than $100 million in fees and commissions.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.