Spectrem Study: Investors Considering Alternative Investments

CHICAGO, IL, USA, April 15, 2020 /EINPresswire.com/ -- Following the initial shock of seeing their investment portfolios decline sharply over market concerns about the coronavirus pandemic, investors have moved on to considering future investment alternatives, while also evaluating the performance of their financial advisors during this crisis, according to Spectrem Group's second edition of its coronavirus report, published today.

Corona Crash: What Advisors Should Be Saying to Investors Now is a three-month examination of how the stock market crash triggered by the coronavirus outbreak has impacted wealthy investors. The April edition focuses more closely on the response from investors while defining just how harmful the stock market reaction has been to investors’ bottom line.

Key findings include:

• While 15 percent of investors have sold equities in recent weeks, a greater percentage (21 percent) have purchased equities to try to take advantage of lower stock prices, assuming there will be a rebound in the coming months. Wealthier investors are more likely to have taken both of those approaches in April.

• Just over half of investors believe their advisor has been very proactive in handling their investments during the coronavirus crisis, but 10 percent believe they would be better served with a different primary financial advisor. That includes 20 percent of those investors with a net worth between $15 million and $25 million.

• An overwhelming majority of investors (74 percent) expect the American economy to go into recession.

“Investors have moved past the initial shock of the recent market declines and are now ready to plan for the future,’’ said Spectrem President George H. Walper Jr. “They have also had two months to assess the performance of their financial advisor in response to this crisis, and while there is a general satisfaction with how advisors have addressed their needs, many investors are rethinking their professional relationship with their advisor. The study reveals what advisors need to understand about how investors are thinking to provide the guidance those clients want and need during this volatile period."

About Spectrem Group: Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.