Trends in Advisor Behavior During Marketing Volatility - Week of April 13
Advisors are very slowly reducing cash levels. Advisors are slightly favoring non-risky assets over risky assets, which is more in line with historical views on risk. 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. Both equity and fixed income mutual funds and ETFs were net flow flat last week. The data suggests that advisors are not yet putting excess cash to work, but rather letting the increase in the equity portion of the portfolio reduce the allocation to cash through market movement.