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Safe Havens in an Uncertain World

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Safe Havens in an Uncertain World

Written by: Nationwide Advisory Solutions

View top factors causing financial concerns—and top proactive strategies advisors use to protect clients’ assets and manage retirement risks.

Markets hate uncertainty. It drives volatility and ignites concerns. Over the past several years, uncertainty has been ever present. To better understand the perspectives, concerns and strategies of investors and advisors when it comes to managing uncertainty and mitigating volatility, let’s set the scene for 2019.

Back in 2017, optimism was high: the market was fueled by the prospects of a finance-friendly tax plan, Trump’s promise to cut government regulation and a business-friendly majority in both the House and the Senate. The market saw record low levels of volatility with the VIX bottoming at 9.14 in November.

Then came 2018. Weakness in the tech sector, fear of rising rates and concerns about slowing growth at home and abroad sent volatility soaring—with dramatic shifts in both directions. In just one month, the VIX quickly spiked from January’s low of 9.22 to February’s high of 29.06. In fact, over 50% of the ten biggest single-day gains and declines for the Dow Jones Industrial Average happened in 2018. As the year came to an end, optimism waned as the reality of the new tax reforms set in, while contentious mid-term elections widened the partisan divide and aggravated gridlock in Washington. Likewise, ongoing tension around the globe, and the looming threat of trade wars fanned the flames of unease. Whispers of recession got louder as a strong bull market swayed.

In 2019, RIAs, fee-based advisors and the clients they serve are feeling cautious, yet clear-eyed about the challenges they face. The majority of advisors and investors expect market volatility to increase over the next 12 months, and express concerns about a possible bear market and the potential of a recession in the year ahead. At the same time, they are prepared with strategies to protect their assets and their financial future for retirement and beyond.

The Safe Havens in an Uncertain World Special Report will help you better understand investor and advisor perspectives, concerns and strategies for managing uncertainty and mitigating volatility. Tap into these insights to enhance profitability now—and position your firm for the future. To read the complete first chapter of this special report, please visit Nationwide Advisory Services and register to download the report.

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Related: Why You Should Address Volatile Market Concerns During Client Reviews

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