Market Sentiment Increases Among RIAs

The report by Security Benefit finds that RIA sentiment has increased slightly post-election
Security Benefit markets
Image Credit: © Komgrit Pradissagul | Dreamstime.com

A new report by Security Benefit analyzes post-election sentiment among financial advisors, just days before president-elect Donald Trump is set to step into office once again.

The firm’s RIA Economic Outlook Index, in partnership with Greenwald Research, found that attitudes among registered investment advisors (RIAs) increased positively to 56, after falling to 53 during the third quarter of 2024 but still low compared to Q1 2024’s score of 58. The index scales behavior from a range of zero, at extremely pessimistic, to 100, at extremely optimistic.

Furthermore, 32% of the 100 RIAs surveyed by Security Benefit said they were not at all or not too concerned about a major equity downturn within the next 12 months, and 20% believe the S&P 500 will see 10% gains within the next year.

“Optimism around the direction of the markets in 2025 is tempered by the belief that progress on inflation will be muted,” said Mike Reidy, national sales manager of RIA Channel at Security Benefit.

Still, over half of RIAs (54%) estimate stock market volatility will be higher in the next 12 months than it was in 2023, and 40% believe inflation will be at least 3% in the upcoming year—a 7% increase from Q1 2024.

“With all this in mind, it is important that clients and advisors prepare their portfolios for all scenarios with protection-based products,” Reidy added.

With Trump heading back into office, Security Benefit reports that more clients are speaking with advisors about the Tax Cuts and Jobs Act (TCJA) and questioning whether Trump will reinstate and expand the legislation. According to the findings, eight out of 10 RIAs believe a TCJA renewal is likely before the end of 2025.

If it is not renewed within the year, three out of four advisors say it would slow the economy, through 47% admit it would not disrupt interest rates. If it is not renewed, 65% of RIAs said they would increase the use of tax-preferred investments to safeguard client assets.

SEE ALSO:

Trump Social Security Plan Would Hike Benefit Cuts, Speed Up Insolvency: CRFB Analysis

Second Trump Presidency: End of Tax on Social Security Benefits?

Amanda Umpierrez
+ posts

Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.

Related Posts
Total
0
Share