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The S&P 500 has clawed back its post-Liberation Day losses and then some with the benchmark domestic equity gauge higher by nearly 7% for the month ending June 10 and flirting with all-time highs.
Perhaps not surprisingly, the magnificent seven stocks have done a considerable amount of the heavy lifting in recent weeks. Add to that, while animal spirits haven’t been entirely reborn, data indicate April’s tariff tumult didn’t shake many retail investors out of the market. They were buyers.
With those factors and more in mind, it stands to reason that registered investment advisors are constructive on equities for the second half of 2025. Indeed they are. The InspereX 2025 Advisor Pulse Outlook Survey released Monday confirms two-thirds of the 829 financial advisors polled believe the S&P 500 will rise at least 10% before the end of this year from where it was the week of May 12-19. Conversely, just 8% believe the S&P 500 could conclude 2025 with a loss of 10% or more.
“Nearly half (49%) of advisors believe equities will be the top performing asset class in 2025, followed at a distance by gold (14%) and cryptocurrencies (11%),” according to the survey. “When asked which asset classes will be the most volatile throughout the year, advisors identified equities (44%) and cryptocurrencies (36%) as the most likely to experience significant market turbulence.”
Volatility as a Feature, Not a Bug
As advisors well know, many market participants view volatility as something inauspicious, believing that the more turbulent things are, the worse their outcomes will be. That’s not always the case, but examining volatility in the traditional sense, it can produce winning outcomes for both advisors and clients.
Nearly two-thirds of surveyed advisors told InspereX that clients became more risk-averse as a result of the macroeconomic goings on in the first four months of the year while another 52% said that climate fostered believe that they may have delay a major life goal, such as buying a home or retirement.
The other side of calamitous coin is that there’s value in volatility. Translation: volatile market settings are ideal times for advisors to add value by helping clients keep their emotions in check and see the long-term goal forest through the trees.
“According to 69% of advisors, periods of market volatility are ‘the best time’ to show value and strengthen client relationships,” adds InspereX. “In terms of business growth, more than half (54%) of advisors said market volatility has led to increased client referrals or interest in professional advice from prospects.”
Advisors: It’s Your Time to Shine
As noted above, advisors are bullish on stocks for the second half of the year and recent performance confirms that outlook is validated. Still, now is an opportune time to keep the channels of communication open because things can change on a dime and because communication is one of the biggest factors in how clients evaluate you.
Fortunately, advisors got that memo. Seventy-six percent told InspereX they mention volatility at least once a month to clients while 96% said they’re conveying to clients that they’ll be alright over the long-term.
“Advisors are optimistic about equity market returns in the second half of the year but understand recent severe volatility has rattled their clients. This is the ideal time for an advisor to demonstrate the enormous value they provide. Through asset allocation and smart planning, successful advisors are able to build portfolios that help their clients weather the storm and stay invested. And when they do, they see their business grow,” said Chris Mee, Managing Director of InspereX.