Investment advisers took to their phones or e-mail to answer client concerns about the possible effect of the crisis in Japan on their investments and on the U.S. recovery in general, according to an InvestmentNews website poll conducted this week.
Investment advisers took to their phones or e-mail to answer client concerns about the possible effect of the crisis in Japan on their investments and on the U.S. recovery in general, according to an InvestmentNews website poll conducted this week.
The crisis in Japan began with a March 11 earthquake and escalated after a massive tsunami wiped out towns on the northeast coast and triggered radiation leaks at nuclear power plants along the coast.
Around 65%, or 149 of 228 who responded, said they have reached out to reassure clients in the wake of the disaster. Around half, or 117 of 246 who answered a second question about client behavior, said clients have initiated calls to them to express concern.
The general tenor of calls was concern over how their portfolios are standing up to the downturn in Japan-related investments and whether the crisis will derail the economic recovery under way in the United States.
Most advisers, 81%, or 184 of 227 who answered, said they do not believe that the crisis will derail the recovery. Around 10%, or 23, said it will derail the recovery, while 20, or just under 9%, said they do not believe that a U.S. economic recovery is under way.
Advisers themselves mostly are taking a wait-and-see attitude to readjusting their investment allocations, with 77%, or 171 of 222 respondents, saying they're keeping clients' equities allocations about the same. A smaller number see a buying opportunity; 13%, or 29 advisers, said they have increased their equities allocation, while 10%, or 22, said they've reduced it.
The survey was conducted online at InvestmentNews.com from Wednesday, March 16, through Friday, March 18. A total of 290 respondents identifying themselves as financial advisers, planners or brokers answered at least one question.
