Financial advisers have grown considerably more cautious about equities
than they were one year ago, according to a new survey.
The InvestmentNews 2012 Investment Outlook survey found that far fewer advisors plan to increase their clients’ equity allocation over the next year compared to last year’s survey. Approximately 44 percent of respondents said they plan to increase clients’ allocation to U.S. stocks, while 42.7 percent plan to hold the allocation steady.
Last year, 63.4 percent of advisors said they would advise their clients to increase exposure to equities, the survey said.
Meanwhile, 58 percent said they expect value investing to be more successful than strategies focusing on growth stocks during 2012
Nearly 44 percent of advisors predicted that financial services will be the worst-performing stock-sector this year, while science and technology are expected to fare the best, the survey said.