E*TRADE Advisor Services, a provider of integrated technology, custody, and practice management support for registered investment advisors (RIAs), today announced results from the most recent wave of its Independent Advisor Tracking study, which covers advisor views on the market, the industry, their business, and clients.
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- Advisors are proceeding with caution. Over half of RIAs surveyed (52%) said they are bearish looking ahead to the next quarter—ticking up six percentage points since March.
- Political instability makes headway as a top risk. Over half of advisors surveyed (56%) are actively managing risks associated with political instability for clients—shooting up 24 percentage points since March and matching recession concerns. However, managing market volatility for clients remains the top risk (81%) RIAs are managing right now, ticking down four percentage points since March.
- Clients continue to try to time the market. The top mistake advisors see their clients make is attempting to time the market (51%), ticking up six percentage points since March.
- But many indicate their client portfolios have already recovered. Two out of five RIAs (41%) said their client portfolios have fully recovered since the downturn.
“As the long-term ramifications of the pandemic begin to crystalize, advisors have to adapt to the changing needs of clients and coach them through these unprecedented times,” said Matthew Wilson, President of E*TRADE Advisor Services. “Building solid client relationships has become increasingly important as more investors become engaged with the market and question the trajectory of their portfolios. And with the backdrop of an election year, client anxiety is likely to remain high. An open line of communication between client and advisor can go a long way in ensuring clients stay the course during potential choppy waters.”
