Sept. 26, 2002 — Trust is the single most important characteristic that investors look for in financial advisors, according to results of a joint survey just published by S&P and BusinessWeek.
Almost half (49%) of respondents cited trust — consistent with the findings of a survey done last year — followed by knowledge (34%). Trust was also the primary reason why investors remain with their financial advisors (64%).
The survey also revealed that three-fourths (75%) of U.S. investors are concerned about their investment portfolios, even though 74% remain “confident” about the U.S. economy. Moreover, two-thirds of active investors (66%) say they are “more conservative” in their investment strategies than a year ago, up from 58% in the first survey.
With 78% of investors having less trust in analysts’ stock recommendations based on recent events, more than two-fifths (44%) of respondents say they have changed their investment strategies as a result of recent events such as restated corporate earnings and stock manipulation.