Trends in Advisor Behavior During Market Volatility - Week of April 6, 2020
Advisors are very slowly reducing cash levels. Their attitude toward risk is neutral, repeating last week's trend, in that both risky and non-risky assets saw nearly zero net flows. Clients, when viewed as a group, continue to withdraw twice as much as they contribute to their investment accounts, a trend that has been consistent for the past 18 months. Equity-style mutual funds and ETFs continue to see inflows, while fixed income styles see redemptions. The data suggest that advisors are not yet putting excess cash to work, but they are reallocating assets within accounts from fixed income to equities.