The study stated that though the investors are not bullish about the markets and the economy in general, they had the confidence in their advisors’ ability to meet their investment goals in the current environment.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Meanwhile, the independent investment advisors said that the clients needed reassurance about markets and added that their confidence in markets could be raised by showing them evidence of recovery and an end to political gridlock.
For the study, there were two companion surveys conducted by Charles Schwab Advisor Services.
While the first study surveyed around 900 RIAs representing US$204 billion in AUM and found that 45% of independent advisors are bullish about the market in the six months; a second, first-time survey of 504 HNW investors found that only 29% are bullish about the market.
Though 25% of the respondents opined confidence in their advisors’ ability to meet their investing goals in the current market, 32% opined in the negative.
Moreover, the reason perceived as barrier to achieving the primary investment goals were barrier is a low return on investments in this market (57%), followed by market losses (37%).
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataConversely, almost 59% of the independent advisors also expressed that they would find it difficult to meet their clients’ investment goals.
Bernie Clark, executive vice president and head of Schwab Advisor Services remarked "It matters less whether clients are optimistic or pessimistic and more that they are realistic about the outcomes they are working towards. This is where advice really takes center stage – providing perspective and expertise within the context of an individual client’s long-term goals, which is what many RIAs do so well."
Additionally, women were known to be a part of decision-making around finances nearly 60% of the time, either as the primary or sole decision-maker (21%) or as part of a couple making decisions jointly (38%).
Regarding the outlook on markets, while 31% investors, compared to 18% of advisors responded stating that unemployment will rise; 27% of investors, compared to 14% of advisors believed in double dip recession; and 60% on investors, compared to 44% advisors perceived increasing inflation.
Around 37% of the investors said that their desire for investment advice during the past four years has increased, with 71% investors seeking investors stated knowledge with a financial advisor, 59% seeking advice, 49% seeking investment performance, 48% seeking trust and 47% seeking service.
