Financial Advisors Shift Client Assets Abroad Amid Waning Confidence in US Markets

Strategic Insights -

Independent registered investment advisors are reevaluating their clients' investment portfolios, allocating more assets to global investments as confidence in the US market wanes, according to a new survey by Interactive Brokers. The 2025 Advisor Insights Survey reveals a significant shift in market sentiment, with 42% of advisors increasing investments in non-US equities and a similar percentage reducing exposure to US equities. This shift aligns with a growing market skepticism, with 62% of advisors reporting a more bearish outlook compared to 12 months ago.

Key Takeaways:

  • 42% of independent financial advisors surveyed are investing more in non-US equities.
  • 42% of advisors are dialing back client exposure to US equities.
  • 62% of advisors report being more bearish in their outlook today compared to 12 months ago.
  • 36% of survey respondents identify as bears, while 31% say they are bulls.
  • Advisors hold a more favorable outlook on global markets, with 38% being bullish and 11% bearish.
  • The biggest concerns for advisors are tariffs and changing US policies.
  • More than half of advisors note that clients are most worried about the impact of market volatility on their portfolios.
  • One in five advisors say clients are most worried about retirement.
  • Advisors are redirecting client assets in various ways, including:

+ 29% increasing fixed income investments.

+ 28% investing more in commodities.

+ 27% increasing exposure to non-US currencies.

+ 37% increasing cash holdings (US dollars).

  • 61% of advisors are confident that their businesses will grow this year, with 17% being extremely confident.

Statistics:

  • 42% of advisors are investing more in non-US equities.
  • 62% of advisors are more bearish in their current outlook compared to 12 months ago.
  • 36% of respondents identify as bears.
  • 31% of respondents identify as bulls.
  • 38% of advisors are bullish on global markets.
  • 11% of advisors are bearish on global markets.
  • 61% of advisors are confident in their ability to grow their businesses this year.
  • 17% of advisors are extremely confident in their ability to grow their businesses this year.

Sources:

  • Interactive Brokers (NASDAQ: IBKR).
  • 2025 Interactive Brokers Advisor Insights Survey.
  • M2 EQUITYBITES-June 11, 2025-Financial Advisors Are Bearish on the US and Increasing Allocation to Global Investments.