If it seems like every financial advisor is talking about October's spike in market volatility, it’s because they are.
According to the latest Financial Professional Outlook, Russell Investments’ quarterly survey of financial advisors, market volatility was the third most popular conversation advisors initiated with their clients.
That’s the first time since Russell began the study in 2010 that the topic has ranked so high. Out of the 234 advisors from 145 firms surveyed, 27 percent said it was the most common subject of conversations they’ve started.
Only portfolio rebalancing and performance were brought up by advisors more often in the third quarter.
As for investor-initiated conversations, almost half have asked about market volatility, making it the clear top topic on clients' minds.
“Are advisors (who initiate conversations on volatility) just trying to beat investors to the punch? Or could they be onto something?” wrote Rod Greenshield, the consulting director of private client services and author of the study. “From our perspective, it is not surprising to see volatility pick up now that the markets are in the process of digesting the eventual – and likely gradual – interest rates.”
