Guaging Client Fear

A quarter of advisors say they’ve not had a single question from their clients about the precipitous market plunge, but 45% say 1% to 3% have expressed concern to them about it and 15% of advisors polled say 5% or more of their client base  has expressed concern to them about the plunge.

While the data are no great revelation, it does establish a benchmark for gauging client fear. A4A will continue to poll advisors on this question through our coverage, to give advisors some guidance on the trend in client fear.

The poll of advisors was taken at special coverage of the market turmoil by A4A after the market suffered one of its most volatile days in years. The Dow Jones industrial average plunged over 1,000 points immediately after opening, at 16,459.75, before regaining much of the loss and plunging once again to close at 15,871.28. The Standard & Poor’s 500 dropped about 4% Monday and has fallen 11% since its all-time in May.

A4A's special coverage of the market plunge continue Tuesday, August 25, 2015 at 4 pm. ET, when Dr. Craig Israelsen, an authority on index investing, asset allocation and Modern Portfolio Theory, will remind advisors about the tenets of asset allocation and MPT, and present historical data to put the unnerving plunge in proper perspective.