Advisors appear divided on the direction domestic equity markets will take over the next 12 months. Nearly a quarter of advisors plan to increase their clients’ exposure to large-cap domestic equities over the coming year, while close to a fifth of advisors expect to decrease their clients’ exposure. Government bonds topped the list of assets where advisors expected to decrease exposure.
When considering a change in allocation strategy, 8 in 10 (82%) advisors view changes in clients’ goals and risk profile as the most important drivers of their decisions. Market outlook was the next most highly ranked driver, with half (51%) of advisors saying it was a very important driver. Third-party models were the least relevant consideration, reported as not important by 41% of advisors.
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