Independent advisors are still “somewhat conservative” in their outlook, but there are some bright spots in their expectations, according to a survey from Charles Schwab.
Nearly 60% of those surveyed say that a double-dip recession is unlikely in the next six months, and more than 60% expect the S&P 500 Index to increase in that time period.
But current events still loom large in their minds. Fully 80% say their investment decisions have been impacted by the European debt crisis, while half of them point to declines in the Chinese market, and 40% say the Gulf oil spill gave them cause for concern. As far as their clients are concerned, almost half (49%) are less optimistic than they were a year ago, while just 16% are more optimistic.
“In markets like these that are complicated for investors to navigate solo, there is a clear need for the kind of prudent, objective and personalized guidance provided by independent investment advisors,” Bernie Clark, executive vice president for Charles Schwab Advisor Services, said in a press release.
In other findings, nearly three-fourths of advisors (73%) approve of Fed chief Ben Bernanke’s leadership. The same proportion (73%) also believe it is unlikely that the U.S. dollar will lose its currency status over the next two years.
As far as which asset classes they plan to invest more money in, large-cap stocks were the most common answer. Specifically, 28% said they would invest more in international large-cap stocks, while 27% said U.S. large-cap stocks. The third most common answer, at 20%, was international small-cap in emerging markets.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access