Early results from the Phoenix Marketing International’s Global Wealth Monitor survey for September show that the majority of affluent U.S households chose to ride out the the recent stock market volatility after consulting with their advisors. Additional details including graphics and key statistics can be found here: http://bit.ly/1QoPX0v
The research showed that 65%, or nearly two-thirds of investors made no changes to their portfolios during the time of instability, and roughly the same number (63%) plan to make no changes in the near future. These decisions were made after consulting with advisors on how best to proceed. However, 12% of affluent investors moved some assets to cash, while 10% reallocated assets from stocks to bonds.
During the time of volatility, almost two-thirds (73%) of affluent investors had some form of contact with their financial advisor, with 60% of that contact initiated by the advisor. The message from advisors was to, “stay the course”, with an overwhelming 87% advising that path to clients. Only a scant 2% advised clients to take a strong defensive position.
“These results reinforce our belief that affluent investors are better prepared regarding the fundamentals of the market than they were a few years ago,” says David M. Thompson, Managing Director of the affluent practice at Phoenix Marketing International. “This is a result of the availability of more accessible and transparent market-based data and a growing number of financial advisors who have dramatically improved their client-based communications platforms.”
Additional insight from the research suggests that now more than ever, investors understand that volatility is common and investing for the future is a longer term strategy. In fact, 18% of the investors in the Phoenix study planned to look for undervalued investments, which are often caused by volatile market conditions.
About the Phoenix Global Wealth Monitor
The PMI Global Wealth Monitor (GWM) provides ongoing intelligence on the attitudes, behaviors and needs of affluent and High Net Worth consumers to leading organizations in the U.S., Canada, and Europe. More information on Phoenix’s GWM Study can be found by clicking here.
About Phoenix Marketing International
Phoenix Marketing International is a premier global marketing services firm providing its clients with tailored, unique insight into their customers and markets via a wealth of existing proprietary data. Coupled with custom research products and the latest qualitative and quantitative techniques, Phoenix has extensive research experience across the Automotive, Financial Services, Healthcare, Converged Technology and Media, Restaurant, and Travel/Leisure sectors. From the strategic definition of consumer needs to effective marketing program implementation, PMI provides profit-driven market solutions and is committed to maximizing a client’s Return on Marketing Investment (ROMI) by leveraging the ability to attract and retain new business through cost efficient data acquisition and statistical modeling techniques. Founded in 1999 by Chairman and CEO, Allen R. DeCotiis and President, Martha Rea, Phoenix Marketing International has established its global presence with offices in major locations such as New York, New Jersey, Boston, Philadelphia, Raleigh/Durham, Detroit, and London.