Advisors See Recession Fears Rising Among Their Clients

Interest rates were the next biggest risk at 56%, up from 53%, followed by a flattening/inverted yield curve at 43%, up from 39%. Four in 10 advisors cited recession, the same as last quarter.

“Advisors are focusing on the fundamentals of our economy, which are on relatively solid footing despite how late we are in the bull market run,” Matthew Wilson, head of E-Trade Advisor Services, said in a statement.

“Amid the recent market volatility, advisors can really demonstrate their value to clients — shoring up defenses in client portfolios, helping them understand the bigger picture and encouraging them to stay focused on their long-term goals.”

Th survey was conducted in-house from July 16 to July 29 among 305 independent RIAs.

Here is how advisors ranked sectors in terms of the opportunity for their clients over the next few months:

• Information technology – Q3: 53%; Q2: 51%
• Health care – Q3: 43%; Q2: 34%
• Financials – Q3: 34%; Q2: 34%
• Consumer discretionary – Q3: 26%; Q2: 11%
• Consumer staples – Q3: 22%; Q2: 23%
• Energy – Q3: 21%; Q2: 26%
• Communication services – Q3: 12%; Q2: 8%
• Utilities – Q3: 10%; Q2: 8%
• Industrials – Q3: 9%; Q2: 12%
• Materials – Q3: 6%; Q2: 5%

— Check out Have We Hit a Soft Patch, or Are We Marching to Recession? on ThinkAdvisor.