Advisers big on stocks, survey finds
Financial advisers have had their fill of bonds but have a hunger for stocks, according to the results of a January survey released by The Charles Schwab Corp. last Monday
Financial advisers have had their fill of bonds but have a hunger for stocks, according to the results of a January survey released by The Charles Schwab Corp. last Monday.
Nearly two-thirds of those surveyed said that interest rates and inflation will rise.
As a result, just 6% of advisers said that they are likely to invest more in fixed income — the lowest level since January 2007, when Schwab began its adviser surveys.
“Six to 12 months ago, advisers were loading up on fixed income,” said Bernie Clark, head of Schwab Advisor Services. “The fact that they don’t want more simply means they’ve probably reached the peak of their allocations.”
Six months ago, in the Schwab July survey, just 28% of advisers said that they thought inflation would increase, compared with 64% now.
Likewise, in July, just one in five said they thought that the Federal Reserve would raise interest rates, but now 29% expect a Fed-fueled rise.
Exchange-traded funds remain the top investment vehicles to which advisers are likely to turn, and Mr. Clark said that he thinks that some fixed-income ETFs have been used as cash substitutes.
Advisers have also grown more bullish on stocks. In January, 77% said that they expected the S&P 500 to rise in the next six months, up from 63% in July and 65% a year earlier.
The survey is based on responses from more than 1,300 independent Schwab-affiliated advisers.
E-mail Dan Jamieson at [email protected].
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