Orion Advisor Solutions’ first Mind and Market Investor Sentiment survey shows majority of investors are positive about their individual financial future despite pessimistic outlook for US and global economy – Yahoo Finance | Jewelry Dukan

Investors who work with a financial advisor are more optimistic

OMAHA, Neb., September 19, 2022–(BUSINESS WIRE)–Orion Advisor Solutions’ inaugural Mind and the Market Investor Sentiment survey shows that 66% of investors are positive about their financial future, with four in 10 survey respondents describing their sentiment as confident. The survey results also show that millennials and investors who work with a financial advisor are generally more optimistic about their own financial future, the US economy and US financial markets than other groups.

Half of the investors surveyed are pessimistic about the US economic outlook and 52% are pessimistic about the global economy over the next six months. More than a third (36%) of investors expect poor market performance over the next six months, with 45% expecting lower investment returns in 2022 than in 2021 US political climate. To ease their concerns about meeting their financial goals, investors said their primary focus is on saving money, particularly by holding back on large purchases and reducing discretionary spending. Some have also adjusted their pension plans and/or contributions.

“In a recurring quirk of human psychology, we see that investors can be pessimistic about the broader market and economy while remaining optimistic about their personal economic and investment prospects,” said Dr. Daniel Crosby, Chief Behavioral Officer at Orion. “Financial advisors who understand the disconnect between personal and general sentiment are well-positioned to provide quality, customized advice in uncertain times.”

The survey also uncovered important generational differences on issues including prospects for the economy, the stock market and their own financial future.

  • Optimism about the US economy is higher among Millennials (64%) than among Gen X (35%) and Baby Boomers (22%).

  • Millennials (62%) are more likely than Gen X (30%) or Baby Boomers (14%) to say they have a positive outlook for the stock market.

  • Millennials (82%) are much more likely to be positive about their financial future compared to Gen X (61%) and baby boomers (59%).

  • Millennials (38%) are more likely to invest in the stock market than Gen X (23%) and baby boomers (7%) to ease their money worries and meet their financial goals over the next six months.

  • Millennials (50%) are the most likely to consult a financial advisor, compared to Gen X (32%) and Baby Boomers (27%).

“Millennials’ optimism about the economy and the stock market is not surprising given their demographics have longer-term time horizons than Gen X and baby boomers,” said Tim Holland, CFA, chief investment officer at Orion. “Financial advisors who view the recent market slump as a buying opportunity would likely find a receptive audience for this message among existing and potential millennial customers. When you consider that Millennials are far more interested in working with an advisor than their Gen X and Baby Boomer peers, you can see relevant and timely reasons to engage with this demographic cohort should be the advisor and their practice will prove beneficial in the long term.”

Investors who work with a financial advisor have more positive economic and financial prospects than investors who do not work with a financial advisor. Orion’s survey shows:

  • Four in ten (42%) investors who work with an advisor have an optimistic outlook for the US economy over the next six months, compared with 24% of investors who do not work with an advisor.

  • Thirty-seven percent of those who work with an advisor are positive about the stock markets over the next six months, compared to 20% of those who do not work with an advisor.

  • When it comes to their investments and ability to meet their financial goals, 31% of those who work with a financial advisor have more positive confidence than a year ago, compared to 21% of those who don’t work with an advisor.

The Orion Advisor Solutions Mind and the Market Investor Sentiment Survey is an annual study that provides insight into investor sentiment and the prospects for their financial future. It turns out that the pandemic motivated investors to commit to saving and investing for the future and to focus more on wealth preservation and wealth security than the pursuit of higher returns. Other highlights are:

Post-COVID investment objective changes

Concerns of top investors

Make changes to meet financial goals

Investment objectives have not changed (45%)

Inflation (61%)

Advice from a financial advisor (34%)

More committed to saving, investing in the future (26%)

Market volatility (36%)

Reluctance to make large purchases (34%)

Greater interest in wealth preservation and asset safety versus seeking higher returns (25%)

Recession Potential (34%)

Reduction in discretionary spending (33%)

Think more about the impact of insurance on the financial plan (16%)

The political climate in the US (34%)

Adjustment of retirement savings contributions (20%)

Adjusted portfolio to be more resilient (15%)

Tax policy (21%)

Increasing investments in the stock market (19%)

Seeking more investments aligned with environmental, social and governance issues (14%)

Rising interest rates (21%)

Reassess retirement schedule (15%)

Plan to work longer hours (10%)

Healthcare costs (16%)

Falling investments in the stock market (12%)

survey methodology

TRUE Global Intelligence conducted a 7-minute survey of 500 US citizens with annual household incomes of $150,000 or more from August 22-26, 2022. Respondents must also be invested in at least one of the following areas: stocks, bonds, or mutual funds.

About Orion Advisor solutions

Orion is a leading provider of the technology-enabled trust process that transforms the advisor-client relationship by enabling financial advisors to search, plan, invest and achieve within a single, connected, technology-driven experience. Together, our Orion Advisor Tech, Orion Portfolio Solutions, Brinker Capital Investments, Redtail Technology and TownSquare Capital brand units create a comprehensive offering that enables businesses to seamlessly attract new clients, more meaningfully connect goals to investment strategy and outcomes, and ultimately to track progress toward each investor’s individual definition of financial success. With the addition of Redtail and TownSquare, the combined platform serves $3 trillion in assets under management and $59 billion in wealth management platform assets (as of July 1, 2022). Powering over 5 million technology accounts and thousands of independent consulting firms, Orion is the platform of choice for any growth-oriented consulting firm looking to strengthen client relationships, gain a competitive advantage in a crowded marketplace, and build strong, profitable businesses. Learn more at www.orion.com.

1700-OAS-9/15/2022

View source version on businesswire.com: https://www.businesswire.com/news/home/20220919005168/en/

contacts

For Orion
Michael Steinmetz
Communications Director, Orion
215.817.5610, michele.steinmetz@orion.com

Candice Hudson
FleishmanHillard, on behalf of Orion
580.564.5995, candice.hudson@fleishman.com

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