Where’s all this volatility investors keep talking about?
According to the VIX, volatility has been a no-show in the equity markets lately, but advisors say it’s alive and well in their conversations with investors. Just like last quarter, advisors said the top two investor-initiated conversations were market volatility (54%) and concerns with government policy (53%). Those were followed by global events (35%) and running out of money in retirement (34%).
It was a repeat performance for advisor conversations, too. They continued to focus on the same topics, in the same order: portfolio rebalancing (48%), performance (43%) and running out of money in retirement (30%).
It’s hard to know for certain why investors seem fixated on volatility. Obviously the markets have had quite a run over the last few years and there is plenty of chatter in the press about a pullback. Yet the market’s low volatility levels seem to ignore that possibility, at least for now.2
What advisors and investors are talking about
When thinking about conversations you've had with your clients over the past three months, which of the following have been the most common topics of conversations initiated by you? Initiated by your clients? (up to three responses)
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