M&G’s new Investor Compass finds 83% of investors feel confident making decisions in volatile markets – yet volatility still tests emotions and decision-making. This article explores the gap between confidence and behaviour, and how advisers help clients keep perspective, avoid short-term reactions and stay focused on long-term goals.
It’s not just stock markets that can be volatile. Emotions can lead to rash, poorly timed decisions and crises of confidence – this is where advice can add real value.
- Advised investors are around three times less likely to feel anxious and consider rash changes when markets fall sharply than less affluent, non-advised investors (7% vs 20%).
- 96% of advisers say behavioural coaching is a core part of the value they deliver – but half think it makes up less than 30% of that value, suggesting advisers underplay its impact.
- Confidence in volatile markets falls as retirement nears: 83% of all investors feel confident making decisions in volatile markets, dropping to 74% among the over-45s.
Adviser Intelligence Tool
Search Panacea’s library of insight, technical commentary and adviser resources to quickly find guidance on client and regulatory questions.