"While our survey results indicated a sense of optimism about equity markets coming into the fourth quarter, October has brought some challenges resulting in few places to hide," John Moninger, managing director of retail sales, says in a statement.
Moninger adds, "Advanced advisors are taking advantage of market dips to identify longer-term value, while preparing clients for rising rates. Now more than ever, clients need sound guidance, while the markets are sending mixed messages."
Still, income and growth in wealth aren't the only objectives on advisors' minds, the index reveals; they're also focused on helping clients manage market volatility, a goal that only marginally increased to 127.7 on the ATOMIX from Q2. Key catalysts of market volatility included geopolitical issues and conflicts (28%), the U.S. political environment (26%) and the Fed's rate-hike decisions (22%), the report says.
But not all clients are brimming over with confidence; advisors reported some of their clients still lack confidence, with 44% describing their clients as "anxious" about their investments. In addition, 78% of advisors reported having discussions with some clients about a looming recession; 60% expect volatility to rise in the next six months; and 59% believe tariff-related actions globally will trigger increased volatility.
Advisors are also taking action on short-duration strategies and tax management, in anticipation of coming interest rate hikes and the effects of tax reform. Many are turning to bonds, although of shorter duration, and looking to emerging markets for what they can bring to portfolios.
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