Financial advisors were focused on market volatility in the second quarter, after being most concerned with asset allocation in the first quarter, according to the Fidelity Advisor Investment Pulse survey released today.
The largest group of advisors, 26 percent, said market volatility, downside risks and avoiding a market meltdown were the primary issues on their radar, according to the survey of 200 advisors. Many advisors cited the challenge of ensuring that their clients continue to benefit from the bull market, while also protecting them from losses, as their primary goal.
The second largest group (21 percent) said portfolio management and investment allocation was their top concern. Interest rates and managing bonds and fixed income won the attention of 19 percent each of the advisors.
The fifth area of focus for advisors was trying to find yield and generating income, which 15 percent of advisors had as their main goal. The percentages add up to more than 100 percent because some advisors gave more than one answer.
“We know that many advisors are thinking about a possible market correction, but at the same time they are looking for ways to find growth and generate income for their clients,” says Scott E. Couto, president of Fidelity Financial Advisor Solutions. “We believe that the differences between winners and losers among asset classes and individual securities are likely to increase, favoring active asset managers with the ability to conduct the research necessary to identify those opportunities offering the best chances for growth.