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For immediate release, 02/12/2018

Vast Majority of RIAs and Fee-Based Advisors Have Prepared Clients' Portfolios for Market Correction--and More Than Two-Thirds Recognize Buying Opportunity

 

Louisville, KY—(February 12, 2018)—After the stock market closed a volatile week, with the Dow Jones Industrial Average ending down more than 1,300 points, the vast majority of RIAs and fee-based advisors say they anticipated client concerns and prepared their clients’ portfolios for a market correction, according to the latest survey from Jefferson National, operating as Nationwide’s advisory solutions business. And in the wake of this major downturn, advisors see a buying opportunity for their clients, according to the most recent findings from a leading expert on the issues and innovation that matter most to RIAs and fee-based advisors.

“Market corrections can be a healthy part of a continued bull market, and our latest research shows that RIAs and fee-based advisors remain focused on the long-term—while taking action to protect their clients’ portfolios and preparing for opportunities to create more value,” said Craig Hawley, Head of Nationwide’s advisory solutions business. “Times like these prove the importance of holistic advice from unbiased advisors, who can ensure that clients don’t overreact to short-term market fluctuations, so they can stay the course and build more wealth.”

Key Findings from this latest survey include:

  • More than three-fourths (83%) of RIAs and fee-based advisors said that their clients are concerned about a correction.
  • The vast majority (87%) have prepared clients’ portfolios for a correction—with top three solutions including holding more cash (53%), buying more international stocks (24%), and using more liquid alternatives (24%).
  • While focused on the importance of a long-term plan, RIAs and fee-based advisors say they will remain nimble in response to a market correction:
    • 45% would manage portfolios more actively versus passively
    • 45% would invest portfolios more aggressively versus conservatively
    • 59% would increase equity exposure
  • Likewise, more than two-thirds (67%) say that now is a good time to invest in the market—with more than half (51%) saying stocks are appropriately valued, while more than one-third (36%) believe stocks are still overvalued.

Despite recent shifts in market values and volatility, the current Bull Market remains the second longest on record. Nearly two-thirds of advisors did not proactively change their investing strategy in response to the long-running Bull Market. Of the roughly one-third who did change their investing strategy, more than three-fourths managed portfolios more actively versus passively, and nearly two-thirds invested portfolios more conservatively versus aggressively.

Media Relations
JeffNat Deborah Newman 502.587.3858

Survey Methodology:

This Market Correction Survey was conducted online by Jefferson National from February 7, 2018 - February 12, 2018. A total of 343 RIAs and fee-based financial advisors completed the survey for a confidence level of 95% +/- 5%.

About Jefferson National

Jefferson National, operating as Nationwide’s advisory solutions business, is a recognized innovator of a leading tax-advantaged investing solution for RIAs, fee-based advisors and the clients they serve. Trusted partner to a network of more than 5,000 advisors, Jefferson National provides greater efficiency, transparency and choice through an adaptable technology platform, award-winning distribution strategy and cost-effective servicing capabilities. Named the industry “Gold Standard” as of 2012 and winner of more than 50 industry awards, including the DMA 2010 Financial Services Company of the Year. The company serves advisors and clients nationwide, through its subsidiaries Jefferson National Life Insurance Company and Jefferson National Life Insurance Company of New York. To reach our advisor support desk, please call 1-866-WHY-FLAT (1-866-949-3528). To learn more, please visit www.jeffnat.com.

 

About Nationwide

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.

Nationwide, Nationwide is on your side, the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2017