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E*TRADE Advisor Services Study Reveals Market Outlook for RIAs and Their Clients

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NEW YORK--(BUSINESS WIRE)--

Advisors also reveal biggest client mistakes in the current market

E*TRADE Advisor Services, a provider of integrated technology, custody, and practice management support for registered investment advisors (RIAs), today announced results from the most recent wave of its Independent Advisor Sentiment survey:

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  • Advisors are bullish on the market. Nearly three quarters of advisors (72%) are bullish on the market over the next quarter.
  • But volatility is a major client concern. Nearly half of advisors (47%) said their clients are contacting them to express concern about market volatility.
  • Clients are eyeing alternatives, but aren’t turning to crypto. Amid global slowdown concerns, investors may be looking beyond traditional investments. Real estate (30%) and cannabis securities (18%) are top ranked according to advisors, while only 3% said their clients are interested in cryptocurrencies.
  • RIAs see opportunity in beaten-down sectors. More than half of advisors (51%) said the information technology sector could offer buying opportunities this quarter, followed by financials (34%) and health care (34%).
  • Investors continue to want to act on their emotions. Advisors noted the biggest mistake clients make is trying to time the markets (43%) followed by not saving enough for retirement (27%).

“Advisors play an important role in helping their clients avoid the noise and keep their financial goals in focus,” said Matt Wilson, SVP of Institutional Services at E*TRADE Financial Corporation. “It’s critical for advisors to build a strong relationship with their clients so they can help them understand where opportunities lie, when may be the right time to make a move, and, more importantly, when to stay put.”

The results also revealed advisors have yet to truly focus on specialty client segments. Almost half of RIAs surveyed said they specialize in Baby Boomer investors (44%), while over a quarter indicated they do not specialize in any particular client segment.

About the Survey

This survey was conducted in-house from March 19 to March 26, 2019, among a convenience sample of 302 independent RIAs.

About E*TRADE Financial and Important Notices

E*TRADE Financial and its subsidiaries provide financial services including brokerage and banking products and services to retail customers. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and options on futures products and services are offered by E*TRADE Futures LLC (Member NFA). Managed Account Solutions are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. Bank products and services are offered by E*TRADE Bank, and RIA custody solutions are offered by E*TRADE Savings Bank doing business as “E*TRADE Advisor Services,” both of which are national federal savings banks (Members FDIC). More information is available at www.etrade.com.

E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G

© 2019 E*TRADE Financial Corporation. All rights reserved.

Referenced Tables

 
When it comes to the market in the next three months, are you?
Bullish   72%
Bearish   28%
 
     
When it comes to the market, what are your clients contacting you most about?
Market volatility   47%
Fears of a recession   26%
China and US trade tensions   11%
Gridlock in Washington   5%
Federal reserve monetary policy   1%
Flattening yield curve   1%
Brexit   0%
Economic weakness in Europe   0%
None of these   5%
Other   4%
 
 

In general, please rate your clients’ current interest in each of the following…

   

Bottom

    Not at all     Only a little     Somewhat     Very     Extremely     Top
     

two box

    interested     interested     interested     interested     interested     two box
Real estate     25%     4%     21%     45%     26%     4%     30%
Marijuana securities     57%     25%     32%     25%     14%     4%     18%
Renewable resources     59%     20%     39%     27%     13%     1%     14%
Emerging markets     46%     12%     34%     40%     11%     3%     14%
ESG investments     63%     29%     34%     26%     8%     3%     11%
Cryptocurrencies     84%     50%     34%     13%     3%     0%     3%
 
 
What industries do you think offer the most potential for your clients this quarter? Top three
Information technology   51%
Financials   34%
Health care   34%
Energy   26%
Consumer staples   23%
Industrials   12%
Consumer discretionary   11%
Other   9%
Communication services   8%
Utilities   8%
Materials   5%
 
     
What is the biggest mistake you see your clients making?
Trying to time the market   43%
Not saving enough for retirement   27%
Prioritizing their dependent's financial needs over their own   11%
Acting on stock tips that don't align with long-term goals   8%
Asking for early withdrawals from retirement accounts   5%
Other   4%
None   2%
 
     

Thinking of your individual book of business, do you specialize in any of the following client segments?

Select all that apply

Baby Boomer investors   44%
Widows/Divorced/Single   20%
Women   16%
Medical professionals   14%
HENRYs (High Earners, Not Rich Yet)   13%
Gen X investors   10%
Millennials   7%
LGBTQ community   4%
Special needs families   1%
None   26%
Other   8%
 

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