The Congressional election Tuesday is causing concern for many advisors’ clients, according to a survey by SEI Advisor Network.
The firm’s survey of 238 advisors found that half thought the elections had created “fear and uncertainty” among their clients, who are already worried about unemployment levels, the potential for a double-dip recession, rising taxes and budget deficits.
While advisors themselves are more bullish—most are “cautiously optimistic” about the economy and think “some compromise” about the Bush-era tax cuts will be reached—they say prospects’ macro-economic concerns are making it hard for advisors to grow their practices and only 65% expect to reach their revenue goal this year.
SEI’s advice to advisors? Proactively reach out to clients and prospects to directly address their concerns. “Where there’s fear and uncertainty among investors, whether it’s caused by an election or otherwise, we tell advisors to do one thing and do it well: communicate,” said Steve Onofrio, managing director of SEI Advisor Network, in a statement. “Advisors’ role is to provide the necessary advice to ensure that [clients] are on track toward meeting their goals in any environment.”