Survey of 2,000+ Financial Advisors Shows Strong Confidence in Bailout Plan. 2-in-3 Advisors Predict Market Up 10% to 25% in 12 months.

2008-10-09 00:54:01 -

- Two-in-three financial advisors believe the government's Wall Street rescue plan will work and expect the S&P 500 to rise between 10% to 25% in the next 12 months.

Sixty-six percent of the advisors surveyed also said they had discussed the current market drop with at least three-fourths of their clients. And 38% said they talked with nearly all

of their clients.

By contrast, only 9% said they had contacted only about a quarter of their clients.

"It's important to remember that financial advisors are not the 'Wall Street' investment bankers, traders and executives at the source of the current crisis," said William T. Nicklin, CEO of Horsesmouth. "These are the professionals working face-to-face with the investing public to help secure the financial futures of families across the country. We are pleased to see advisors once again providing an invaluable steady hand when it is needed most."

The survey of 2,275 financial advisors was conducted online by Horsesmouth LLC between Friday Oct. 3 and Tuesday, Oct. 7.

All respondents were members of Horsesmouth (www.horsesmouth.com), a private, online service and community for financial advisors. At Horsesmouth, advisors gain access to best practices from other advisors and experts on how to better serve their clients.

The average respondent has been a financial advisor for more than 12 years.

Advisors said their clients naturally have raised questions about the safety of their portfolios. Nearly 50% of advisors said at least half of their clients asked specific questions about the safety of their money market funds or general questions about portfolio insurance.

Movement within their clients' portfolios has been relatively low, the survey showed. Only 11% of advisors said they had made changes to a half or more of their clients' portfolios. More than 74% of advisors said they had made adjustments to 15% or less of their clients' investments.

Overall, advisors see the current market turmoil as a good opportunity to work with new clients, with 48% saying they expect to be bold in seeking new clients and 43% saying they expect to pursue new clients as the opportunity arises.

Only 9% said they expect to be struggling to keep clients.

"A bear market is the ideal time for seasoned advisors to reach out to people who need help with financial planning and portfolio management," said Sean M. Bailey, Horsesmouth editor-in-chief. "So, it's no surprise that veteran advisors recognize an opportunity to extend their services to investors in need of guidance."

When asked to predict where the S&P 500 will be in 12 months:

-- 23% of advisors said it would be up about 25%

-- 45% said it would be up about 10%

-- 18% predicted the index will be about where it is now

-- 11% predicted the S&P 500 would be down around 10% in a year

-- 3% said it would 25% lower.

About Horsesmouth (www.horsesmouth.com)

Horsesmouth is dedicated to helping financial advisors build better businesses for themselves and their clients. Every day, we deliver the practical how-to guidance, tools, best practices and inspiration necessary for advisors to develop more business, build stronger relationships with clients and manage their practices more effectively. Advisors have ongoing access to over 5,000 different business-building and practice management resources. On average, more than one-third of these resources are utilized by advisors each day.

Through our pioneering flagship online service and advisor community, as well as our acclaimed advisor programs and workshops, Horsesmouth is the trusted partner of advisors across the financial services industry. For a free trial and more information on how to become a member of Horsesmouth, visit www.horsesmouth.com.

Horsesmouth was founded in 1996 and is located in New York's financial district.

INTERVIEW:
Horsesmouth LLC
William T. Nicklin, 212-343-8760
wtn@horsesmouth.com
www.horsesmouth.com