Financial advisers warning about the months ahead
Research conducted by Liverpool Victoria in conjunction with its financial advisers has revealed their concearns of troubled times ahead.
- Nine out of ten or 87 per cent financial advisers think that markets will remain turbulent over the next few months.
- Only 31 per cent think that equity markets will increase rather than decreae of the next year.
- As a result of this 36 per cent of advisers are telling their clients not to make any further investments in equity-based markets.
- 44 per cent of financial advisers think the housing market will drop in the next six months.
Head of Pensions at Liverpool Victoria, Ray Chinn, said “The FSA has already hinted that there could be tough times ahead over the coming year, as the true effects of the global credit crisis strengthens. With this in mind it is not surprising that so many financial advisers believe the next few months will be unstable, and that equity markets may take a downturn. It is important to remember however that financial advisers play a vital role in building people’s retirement portfolios through both good and bad times. Moreover, it is also vitally important that advisers have access to products that are relevant to the needs of today’s at and post retirement clients, offering a real range of investment options to suit different economic conditions.”
Managing Director of Liverpool Victoria, Steven Daniels, added “Historically, investment markets have always encountered periods of turbulence on their long-term upward path, and we agree that market volatility is likely to continue in the coming months. Nonetheless, the economic outlook – the main cause of current concerns – should improve as expected interest rate cuts come through. For clients holding long-term investment products, and assuming that their financial circumstances and goals have not changed - we don’t see the current period of volatility as a cause for concern. For those considering establishing or increasing their exposure to long-term investments, current market conditions may represent a good buying opportunity.”