Investors more apt to stand pat than advisers

How are financial advisers and investors reacting to the current stock market decline? Slightly more than half (53.2%) of the 765 advisers who responded to an InvestmentNews poll about investment recommendations said they were advising their clients to reallocate investments, while 46.8% (358) were suggesting investors stand pat.

How are financial advisers and investors reacting to the current stock market decline?
Slightly more than half (53.2%) of the 765 advisers who responded to an InvestmentNews poll about investment recommendations said they were advising their clients to reallocate investments, while 46.8% (358) were suggesting investors stand pat.
In a separate poll of investors, 72.2% (514) of 707 respondents had not moved money from one type of investment to another in the past month, while 27.3% (193) had.
The poll of advisers was conducted by InvestmentNews between Oct. 1 and Oct. 6. The poll of investors was conducted simultaneously by Crain’s Chicago Business, Crain’s Cleveland Business, Crain’s Detroit Business and Crain’s New York Business.
Among advisers who suggested reallocations, 57.5% recommended to at least 10% of their clients that they withdraw money from stocks or equity mutual funds; 23.9% recommended withdrawing from bonds or bond mutual funds; and 21.2% recommended withdrawing from bank savings accounts. Advisers were allowed to select more than one asset class when answering the question.
By contrast, 56.2% of advisers recommended investing in equities or equity mutual funds and 42.2% recommended investing in bonds or bond mutual funds.
Among those readers whose shifted investments, 59.6% had moved out of stocks and stock mutual funds, 36.5% had liquidated investments into cash and 32.3% had deposited money into bank savings accounts.
Respondents were allowed to select more than one asset class when answering the question.