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- Nearly nine-in-ten investors say their financial advisor has helped them remain confident in this period of rising inflation and market volatility<\/i><\/li>\n<\/ul>\n
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- Millennials are significantly more comfortable with the highs and lows of the financial markets than Generation X (Gen X) and Boomers<\/i><\/li>\n<\/ul>\n
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- Generation X is least likely to work with an advisor<\/i><\/li>\n<\/ul>\n
BOSTON–(BUSINESS WIRE<\/a>)–
\nState Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the findings of its Inflation Impact Survey: Advisor Edition<\/i>. The survey found among those currently working with a financial advisor, the vast majority say their advisors\u2019 insight and guidance is valued even more today and has helped them remain confident during this period of rising inflation and market volatility.\n<\/p>\nThis press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20220909005402\/en\/<\/a><\/p>\n
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<\/p>\nA third of investors agree that now is a good time to invest more in the market. (State Street Global Advisors’ Inflation Impact Survey; June\/July 2022)<\/p>\n<\/div>\n
\nThe release of this advisor-related data follows the initial findings of State Street Global Advisors\u2019 Inflation Impact Survey<\/a> which found inflation-induced stress and anxiety is influencing investor behavior when it comes to short-term budgeting and committing to long-term financial goals. It also analyzed the value provided by financial advisors during a period of heightened volatility and uncertainty.\n<\/p>\n
\n\u201cThe top two questions advisors are hearing from their clients today are, \u2018Is now a good time to invest?\u2019 and \u2018How can I protect my portfolio against inflation,\u2019\u201d said Allison Bonds, head of Private Wealth Management at State Street Global Advisors.\n<\/p>\n
\nThe survey revealed that among those working with a financial advisor, about three-quarters have discussed inflation with their advisor, including how inflation will impact their investment goals in both the short and long-term. Furthermore, nine-in-ten say they value their financial advisors\u2019 knowledge and guidance even more in these uncertain times, and 86% believe their advisor has helped them remain confident in this period of rising inflation and market volatility.\n<\/p>\n
Is It Better to Work with a Financial Advisor? Sandwich Generation Unsure<\/b><\/p>\n
\nOverall, approximately half of investors (49%) agree that it\u2019s better to work with a financial advisor when there is volatility in the market.\n<\/p>\n
\nWhen examining the generational differences in attitudes about working with an advisor, Gen X respondents were the least likely to work with an advisor in today\u2019s volatile markets. Only 42% agreed it is better to have the guidance of an advisor compared to 63% of Millennials.\n<\/p>\n
\nState Street Global Advisors Benchmark Survey1<\/sup><\/i> provides additional insight as to why Gen X balks at the idea of using a financial advisor. It revealed the top two reasons are 1) they prefer to have full control over their investment decisions (46%), and 2) they don\u2019t trust that financial advisors have their best interest in mind (41%).\n<\/p>\n
\nGen X\u2019ers are the most concerned with rising inflation, with 88% reporting that inflation is a top concern. Given the majority are also concerned about their ability to afford retirement and staying the course with their current investment strategy, now could be an opportune time for this generation to be more proactive about seeking help from a financial professional.\n<\/p>\n
\n\u201cAdvisors have an opportunity to cultivate trusting, collaborative relationships with Gen X clients who want to remain involved in making their own investment decisions to a greater extent than other generations,\u201d said Bonds. \u201cGen X\u2019ers are in their peak earning years and in the accumulation phase of their financial planning, yet they are also juggling multiple financial priorities. This generation is currently sandwiched between taking care of their children and aging parents. Gen X is more likely to have children under 18 in the household, so discretionary spending can become stretched if they are also supporting aging parents.\u201d\n<\/p>\n
Investor Tolerance for Market Volatility<\/b><\/p>\n
\nA comparison of prior years\u2019 comfort levels with market volatility shows that the market\u2019s ups and downs are making investors more queasy. When asked how much they agree with the statement, \u2018I am comfortable with the highs and lows of the financial markets,\u2019 <\/i>just 31%are in agreement, which is significantly lower than a year ago (51%), and about the same as the height of the pandemic (33%) in 2020.\n<\/p>\n
\nMillennials are the standout, with 49% saying they are comfortable with the volatility, compared to 22% of Gen X\u2019ers and 24% of Boomers.\n<\/p>\n
\n\u201cMillennials possess a glass half-full mentality when it comes to their financial futures. They know they have a longer time horizon to ride out the downturns and inflationary pressures. Sixty-three percent are optimistic they will reach their financial goals despite record inflation, whereas most investors in other generations believe inflation is an obstacle to meeting their objectives,\u201d said Bonds.\n<\/p>\n
Is Now a Good Time to Invest More in The Market?<\/b><\/p>\n
\nThere also seems to be some ambivalence about whether now is a good time to put more money to work in the market, with one-third (33%) of investors agreeing that now is a good time to invest more in the market; 36% neither agreeing or disagreeing and 25% disagreeing.\n<\/p>\n
\nNot surprisingly, Millennials (47%) are significantly more likely to think it\u2019s a good time to invest than Gen X (34%) and Boomers (24%).\n<\/p>\n
\n\u201cThe old adage about investment success being about time in the market, not timing the market rings true today,\u201d added Bonds. \u201cAdvisors who use a goals-based approach can help clients who are vulnerable to overreacting when markets take a downturn. This approach can help clients remain confident about their financial plan even in volatile markets.\u201d\n<\/p>\n
State Street Global Advisors\u2019 Educational Content<\/b><\/p>\n
\nFor more on State Street Global Advisors\u2019 point of view on how advisors can help clients remain confident during uncertain times, read Market Volatility: A Relationship-Building Opportunity for Financial Advisors<\/a>.\n<\/p>\n
Appreciating the True Value of Advice<\/a> offers insights for individual investors on how to find the right financial advisor.\n<\/p>\n
\nState Street Global Advisors\u2019 list of 4 Things Investors Can Do in Volatile Markets<\/a> provides insight for investors seeking ways to hedge their portfolio in today\u2019s uncertain economic environment.\n<\/p>\n
Market Volatility\u2019s Back: Get In and Out With Liquid ETFs<\/a> discusses the importance of liquidity in volatile markets.\n<\/p>\n
\nFor more on SPDR\u2019s point of view on the market, economy and inflation read our 2022 Mid-Year Outlook<\/a> and 5 Burning Questions Give Investors Insight: Durable Rebound or More Pain to Come?<\/a><\/p>\n
\nSPDR\u2019s Uncommon Sense<\/a> provides contrarian perspectives from Michael Arone, Chief Investment Strategist for the US SPDR\u00ae business, that encourage investors to think beyond consensus opinion to identify and capitalize on new opportunities.\n<\/p>\n
\nFor more on SPDR\u2019s take on inflation and the Federal Reserve, read The Federal Reserve Will Declare a Premature Victory Over Inflation.<\/a><\/p>\n
\nFor more educational tools and resources on ETFs, click here<\/a>.\n<\/p>\n
\nTo learn about how investors are using low-cost ETFs to achieve a variety of investment objectives, read Build a Low-Cost Core Portfolio with SPDR ETFs<\/a>.\n<\/p>\n
About State Street Global Advisors\u2019 Inflation Impact Survey<\/b><\/p>\n
\nState Street Global Advisors, in partnership with A2Bplanning and our field partner, Prodege, conducted an online survey among a nationally representative sample of adults. Data was collected from June 28 \u2013 July 5, 2022. For our Custom \u201cInflation Impact Survey,\u201d we analyzed 243 adults with Investable Assets (IA) of $250K or more. Nearly half of those are currently working with a financial advisor.\n<\/p>\n
About SPDR Exchange Traded Funds<\/b><\/p>\n
\nSPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. The funds provide investors with the flexibility to select investments that are aligned to their investment strategy. For more information, visit www.ssga.com<\/a>.\n<\/p>\n
About State Street Global Advisors<\/b><\/p>\n
\nFor four decades, State Street Global Advisors has served the world\u2019s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world\u2019s fourth-largest asset manager* with US $3.48 trillion\u2020 under our care.\n<\/p>\n
\n*Pensions & Investments Research Center, as of 12\/31\/21.\n<\/p>\n
\n\u2020This figure is presented as June 30, 2022 and includes approximately $66.43 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.\n<\/p>\n
1 <\/sup><\/i>State Street Global Advisors Individual Investors 2019 Study. A global survey on consumer sentiment, purpose and behavior in wealth management.<\/i><\/p>\n
Important Risk Disclosures<\/b><\/p>\n
\nThe information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA\u2019s express written consent.\n<\/p>\n
\nInvesting involves risk, including the risk of loss of principal.\n<\/p>\n
\nThis communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.\n<\/p>\n
\nETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.\n<\/p>\n
\nWhile the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.\n<\/p>\n
\nEquity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.\n<\/p>\n
\nFrequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.\n<\/p>\n
\nAll information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.\n<\/p>\n
\nThere can be no assurance that a liquid market will be maintained for ETF shares.\n<\/p>\n
\nThe trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.\n<\/p>\n
\nStandard & Poor\u2019s\u00ae<\/sup>, S&P\u00ae<\/sup> and SPDR\u00ae<\/sup> are registered trademarks of Standard & Poor\u2019s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation\u2019s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third-party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.\n<\/p>\n
Distributor:<\/b> State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs.\n<\/p>\n
Before investing, consider the funds\u2019 investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit ssga.com. Read it carefully.<\/b><\/p>\n
Not FDIC Insured \u00b7 No Bank Guarantee \u00b7 May Lose Value<\/b><\/p>\n
\nState Street Global Advisors, 1 Iron Street, Boston, MA 02210-1641.\n<\/p>\n
\n\u00a9 2022 State Street Corporation.\n<\/p>\n
\nAll Rights Reserved.\n<\/p>\n
\n4864608.1.1.AM.RTL Exp. Date: 01\/31\/2023\n<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20220909005402\/en\/<\/a><\/span><\/p>\n
\nDeborah Heindel
\n
+1 617 662 9927
\n
DHEINDEL@StateStreet.com<\/a><\/p>\nKEYWORDS:<\/b> Massachusetts United States North America<\/p>\n
INDUSTRY KEYWORDS:<\/b> Personal Finance Finance Millennials Banking Professional Services Small Business Generation Z Generation X Consumer<\/p>\n
- Generation X is least likely to work with an advisor<\/i><\/li>\n<\/ul>\n
- Millennials are significantly more comfortable with the highs and lows of the financial markets than Generation X (Gen X) and Boomers<\/i><\/li>\n<\/ul>\n
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