Most Investment Advisers Say 'Double-Dip' Recession Unlikely
MarketWatch, Tribune-Review/Pittsburgh Tribune-Review
SAN FRANCISCO -- A majority of investment advisers say that a double-dip recession is unlikely and that the stock market will improve over the next six months -- but their clients are more worried, according to a survey of money managers released Wednesday by financial-services firm Charles Schwab Corp.
Almost 60 percent of advisers said it's unlikely the economy will head back into recession in the next six months -- 28 percent said it's likely to happen -- and 63 percent said the S&P 500 will rise in that time, according to the survey in July of 1,199 advisers who work at independent firms with assets held at Schwab.
But about half of advisers said their clients are less optimistic about the economy than clients were in 2009. And 50 percent of advisers said their clients are less optimistic than they were last year about being able to retire on time, while 40 percent said their clients are less positive about their investments' performance. When it comes to their pocketbooks, 47 percent of clients are trimming back on expenses and more than half are cutting back on spending.
Advisers are more worried about meeting their clients' goals: 71 percent said it's difficult to meet client expectations in the market environment, up from 58 percent who said that in the same survey in January. Still, that's down from the 84 percent of advisers who said that in January 2009.
But clients appear to need less hand-holding these days: 30 percent of advisers said their clients needed reassurance in the past six months about being on track to meet their goals, down from the 49 percent with that response in January 2009. …