Financial Advisors Call 2011 “The Year of Volatility”

Posted by adaniels in Blog on December 28, 2011

“The Year of Volatility” or “The Year of Uncertainty” is what some financial advisors think about the year 2011, according to OnWallStreet.com. This designation, or words to that effect, was the apparent sentiment felt by a many of the 200 financial advisors recently surveyed by SEI Advisor Network. 

One of the big things that the advisors discovered with this year’s volatile market situation is that many of their clients do not quite have the stomach for all the ups and downs involved. Over half of the advisors surveyed described many of their clients as being “apprehensive” over where their money is.

The instability around the world – particularly the European debt crisis – proved to be a big topic of concern for the clients as well, with four out of 10 of the advisors surveyed defining that as the issue their customers were most concerned about. The issue ranked higher than any other one, even higher than the United States government’s own deficit issues.

In addition, financial advisors are spending more time on communicating with their clients on a personal basis than they did in the past. Patrick Tucker of Meridian Management said in a statement to OnWallStreet.com that customers “aren’t just looking for more investment reports or lengthy documents explaining the current status of the financial markets,” noting that “first and foremost, they want personal communication – direct contact through calls, emails, and meetings – with their financial advisor about issues that matter like the status of their goals, personal situation and plans for the future.”

The survey also discovered some good news in this year – four out of 10 of the financial advisors revealed that their business increased by over 10% in 2011, with 12% of the advisors surveyed saying that their firm’s assets increased by over 20% over the past year.

Written by Lisa Swan

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