Nationwide has released its Fifth Annual Advisor Authority Study, the latest in a series of special reports that will run through 2020.
The study, conducted by The Harris Poll, surveyed more than 16,000 investors, registered investment advisers (RIAs) and fee-based advisers to explore the top issues facing each of these groups.
Investor and adviser optimism has fallen for the first time in four years, starting at the beginning of 2019. Investor optimism has declined 7 percent from last year and adviser optimism, 11 percent.
As a result, the number of investors who have an adviser has increased 11 percentage points in four years, to 62 percent in 2019 from 51 percent in 2016.
The study revealed that the majority of investors (66 percent), and registered investment advisers and fee-based advisers (56 percent), anticipate an increase in market volatility over the next year — with 28 percent of them reportedly losing sleep over it.
Investors, RIAs and fee-based advisers are somewhat divided on what they predict will be the main factors in the rise of volatility. Investors say gridlock in Washington, D.C., will be the main cause, followed by global instability and economic performance in the United States.
Meanwhile, RIAs and fee-based advisers say interest rates will be the No. 1 factor, followed by gridlock in Washington, economic performance in the United States and global instability.
To read the full study, click here.