Market ups and downs on everyone's mind, survey shows; lots more phone calls
Financial advisers are going on the offensive in terms of reaching out to clients to discuss market conditions, and most of the conversations are centered on market volatility.
According to the latest research from Russell Investments, financial advisers are still a lot more optimistic about the market and the economy than their clients, but at least everyone is coming into agreement with regard to macroeconomics.
“Conversations have coalesced around the global events of the past year and how they are linked to the interdependency of the global markets,” said Ryan Parker, Russell's managing director, national accounts and business development for Russell's U.S. advisor-sold business.
In Russell's latest financial professional outlook survey, conducted in early November, 63% of advisers said the market volatility has been the primary topic of client-initiated conversations over the past three months.
The increased market volatility has led to more outbound calls by advisers to clients, with 78% of respondents saying they have increased phone calls to clients, 52% are having more client meetings, and 49% said they are receiving more inbound calls from clients.
“Advisers know that volatility and the continued uncertainty surrounding issues around the globe are battering investors' views on the markets,” Mr. Parker said. “Interestingly, while advisers are working to help ease investor concerns, their own sentiments remain quite positive, so much so that they are turning their focus to business growth and expansion in the coming year.”
The survey — of more than 300 advisers — found that advisers continue to be more optimistic than their clients, a pattern Mr. Parker attributed to longer-term versus shorter-term outlooks.
More 66% of advisers reported being optimistic about the capital markets, but less than 10% of respondents described their clients as optimistic.
“We would expect that gap to continue,” Mr. Parker said, citing the tendency of investors to adopt a shorter-term perspective.
“It's the adviser's job to help clients to look ahead longer-term,” he said. “To be a good financial adviser, you have to balance the near term concerns, while keeping clients focused on their long-term goals
