A majority of advisors and investors believe that market volatility will be on the rise over the next month, with 76 percent of advisors and 63 percent of investors voicing concerns about volatility.
Advisors are more likely than investors to change their investment strategy in response to volatility. While nearly two-thirds of advisors, 62 percent, indicated they would change their strategy, just 41 percent of investors said the same. Among those who would change course amid turbulence, 75 percent of advisors and 72 percent of investors said they would plan to invest more tactically.
Advisors are most often responding to industry pressure to prospect for more millennial clients by working with the younger generation of their clients’ families, but they’re also diversifying their strategies. While 36 percent said their method of choice was accessing clients’ children, another 36 percent said they are increasing their use of social media; 26 percent said they are using more mobile technology, and 24 percent said they are offering personalized, holistic advice to younger clients.
In the survey, high-net-worth and affluent investors placed greater emphasis on technology, robo-advice and mobile access than less wealthy respondents.
For the study, Harris Poll interviewed 683 advisors (440 independent RIAs and 243 broker-dealers), and 733 individual investors in March 2016.