Financial planner sentiment heads south
Highly volatile markets and regulatory uncertainty have continued to take their toll on financial planner sentiment, according to the latest data released by Wealth Insights.
The data, contained in the Wealth Insights Financial Planner Sentiment Index, reveals the mood of planners is headed back into territory not seen since the early descent into the global financial crisis in 2008.
The degree to which planner sentiment has declined is also evidenced by their responses to the question - "in your role as a financial planner, are times good or bad for you right now?"
The Wealth Insights research showed a significant decline had occurred in the six months between February and September, with the number of planners reporting times as being "bad" or "very bad" rising from 8 per cent to 35 per cent, while those reporting conditions as being "good" or "very good" declined from 47 per cent to just 21 per cent.
Commenting on the research findings, Wealth Insights managing director Vanessa McMahon said planner feedback suggested planners had been made extremely cautious by their clients' reactions to market volatility and negative reporting of global economic events.
"It seems people are just not doing anything," she said.
McMahon said despite the declining sentiment, few financial planners appeared unduly financially stressed by the downturn.
"Quite surprisingly, most of them seem to believe their businesses are weathering the period reasonably well," she said. "It seems enough clients are still engaging with their planners and business is still rolling along."
The Wealth Insights data reveals that financial planner sentiment reached its lowest point at negative 36 points in February/March 2009 and currently stands at minus 14 points - a position reached in the closing months of last year.
Planner sentiment was at its most optimistic in 2007.
AUTHOR
Mike Taylor
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