Investors seem to be getting over the lofty
expectations of the go-go 1990's, according to a
recent survey.
AdvisorBenchmarking Inc. found that
62% of advisors surveyed say their clients' expectations for market
performance are realistic.
Only 33% say their clients have unrealistically high
expectations and 4% of advisors feel their clients have unrealistically
low expectations.
"Performance expectations are hard to change and the 1990s bull market
set them sky-high," says Maya Ivanova, research analyst for
AdvisorBenchmarking. "Now, good communication between advisors and
clients is more important than ever."
Advisors aren't overly excited about the earnings
potential in upcoming years, either, according to the survey.
Fifty percent of advisors surveyed expect a long-term, secular bull
market with cyclical rallies and dips, while 31% foresee a
directionless market with many peaks and valleys. On the extremes, 6%
expect a sustained bull market and 13% predict a secular bear market
with cyclical rallies and dips.
The federal budget deficit is the top economic
concern of 27% of advisors, while 20% cite underfunding of Social
Security. Other top economic concerns are energy prices, 14%, and the
trade deficit, 10%.
The survey consisted of telephone and online responses from 1,023 registered investment advisors.