Financial Advisor 2022 Forecast: US Equities Up, But Back to Earth | National company

DELRAY BEACH, Florida – (BUSINESS WIRE) – December 6, 2021–

According to InspereX’s latest survey of 260 financial advisers, only 5% of advisers expect a repeat of 2021 with the stock market rising 20% ​​or more. The majority (54%) expect the equity market to rise 10% in 2022. 28% said they expect the market to be flat, while 13% call for a market decline of 10% or more .

Almost 70% do not see calm equity markets going forward with low volatility and more record highs; in fact, the overwhelming majority (95%) said there could be multiple stock market corrections in 2022.

The majority of advisers (55%) expect inflation to become a bigger challenge, but that will not end the market rally. Moreover, only 21% of advisers believe the impact of COVID on the markets is over, while 39% are unsure and 40% said it is not over.

When asked what worries their clients a lot, 57% of advisers said taxes, 40% market corrections and 38% inflation.

These results come from the sixth InspereX Pulse survey conducted online between October 18 and 23, 2021 by Red Zone Marketing. The 260 interviewees represent more than 50 brokers / traders, banks and RIAs. InspereX is the new fixed income and market-related products distribution and trading company founded on the merger of Incapital and 280 CapMarkets earlier this year.

“While many advisers are slightly bullish on equities, they suggest 2022 could be a difficult year with the possibility of many corrections and significant volatility,” said Chris Mee, managing director of market-related products at InspereX. . “In a lower yielding environment, investors typically look to hedge their downside during times of volatility. They aim to capture the rising market and avoid a blockage in growth that could impact their ability to meet their financial goals. “

Interest rate for 2022: flat with upside risk; Persistently low rates threaten pensions, creating difficult conversations

More than half (51%) of advisers expect 10-year Treasury interest rates to hover between 1% and 2% for 2022, but 41% forecast rates at 2-3% or more. Only 8% see the rates fall between 0 and 1%.

What is the impact of persistently low interest rates? Many advisors fear for their retired clients and have difficult conversations:

Significantly, 42% said their retired clients used more of their capital as replacement income because of low interest rates; while 32% said they were concerned that some of their clients would outlive their retirement savings unless returns increase significantly.

Almost 30% said their clients were ‘tired of hearing me explain that they had to take more risk if they wanted more return’, and 10% said they lost clients because they ‘couldn’t not generate the income that clients wanted within their risk tolerance ”.

A third said their clients were convinced that returns would increase for too many years and that it cost them a lot of income.

In terms of strategies to generate income and protect capital, 65% of advisers believe that a laddered approach to bond investing is effective. The top three types of bonds held by their clients are high-grade corporations (35%), municipalities (32%), and treasury bills (10%).

Almost four in ten (37%) said their clients do not understand or appreciate what the taxable equivalent yield on municipal bonds means.

The adviser’s activity: return to the office; Growth through referrals;

Lack of generational relationships

Almost three-quarters (73%) of advisors said they and the majority of their teams have returned to normal working hours. They also said a number of work-related activities had changed permanently over the past 20 months, including using virtual meetings (68%), flexible working from home (65%), digital options for customers (55%) and customer communication (50%).

In addition, 40% now meet customers face to face, while 32% continue to use virtual tools such as Zoom and 28% use the phone.

Advisors seem more cautious about hosting educational events in person, 19% doing so now, 5% planning to do so in Q4 2021; 22% will host hybrid or virtual events in the future; and 54% say they will be hosting in-person events sometime in 2022.

Regarding new business in 2021, 42% of advisers said the majority of their new clients left another advisor; 36% said new clients had never worked with a financial advisor before; and 22% said they were chosen from among several financial professionals.

Unfortunately, only 25% of advisors reported having multigenerational relationships (children of clients) with 50% or more of their clients; the vast majority (75%) have generational relationships with 25% or less of their clients.

The top five ways that advisors grew their businesses in 2021 were:

  1. References without asking
  2. Request referrals from clients and strategic alliances
  3. Networking in person
  4. LinkedIn prospecting
  5. Virtual educational seminars

“Notice the two main ways that advisors generated new business were through referrals. That says it all about the need for advisors to earn the trust of clients and appreciate the value they bring, ”said Mee. “As advisors look to grow their business in 2022, their focus must remain on increasing the value they add through exceptional service and the use of personalized investment strategies that provide clients with peace of mind. of spirit and confidence. If they do, they can expect referrals to likely keep coming. “

Click here for the investigation report.

About InspereX

InspereX is transforming the way fixed income and market-related products are viewed, valued and traded. Home to the pioneering BondNav ® platform – one of the first cloud-native bond aggregation platforms – InspereX provides financial advisers, institutional investors, issuers and risk managers with in-depth access to the markets of the fixed income securities in all asset classes, as well as advanced origination, distribution and education to market related products. Focused on price transparency, liquidity, price improvement targeting execution, and the informational advantage gained through data aggregation, InspereX inspires greater confidence through the power of technology.

The company is a leading underwriters and distributors of securities to more than 2,000 brokers, institutions, asset managers, RIAs and banks. InspereX represents more than 400 issuers and has subscribed for more than $ 670 billion in securities. The company has seven trading offices and more than 200 employees with main offices in Delray Beach, San Francisco, Chicago and New York.

© 2021 InspereX. All rights reserved. Securities offered by InspereX LLC, member of FINRA / SIPC. Technology services provided by InspereX Technologies LLC. InspereX LLC and InspereX Technologies LLC are affiliated companies. InspereX and are trademarks of InspereX Holdings LLC.

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Jean Principio

River communications


[email protected]



SOURCE: InspereX

Copyright Business Wire 2021.

PUB: 12/06/2021 09: 00 / DISC: 12/06/2021 09:02

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