Q2.25 – Market Outlook
Where do you expect the S&P to be in 12 months, compared with today?
Between April and June 2025, most advisors expect the S&P to be higher in 12 months, with 71% predicting a rise and only 11% expecting a decline. However, this optimism has slightly decreased compared to the previous quarter.
Equities
How advisors plan to allocate assets to equities over the next year
Within equity markets, International (43%) and U.S. (38%) equities are expected to see the most investment among financial professionals over the next year, while Japanese equities are expected to see the least, with only 19% planning to increase exposure.
Fixed Income
How advisors plan to allocate assets to fixed income over the next year
Within fixed income markets, high yield bonds are expected to see the most increased investment among financial professionals over the next year, with 26% planning to increase or start using them. In contrast, developed market corporate bonds are expected to see the least, with only 3% planning to increase exposure and a significant portion (29%) not using or planning to use them.
Alternatives
How advisors plan to allocate assets to alternative assets over the next year
Within the alternatives category, commodities ex. gold (27%) and private equity (25%) are expected to see the most investment among financial professionals over the next year. In contrast, currencies are expected to see the least, with only 6% planning to increase exposure.
Advanced Strategies
How advisors plan to utilize advanced strategies over the next year
Within advanced strategies, hedge long/short equity (25%) and hedge multi-strategy (19%) are expected to see the most investment among financial professionals over the next year. In contrast, hedge long/short debt is expected to see the least, with only 9% planning to increase exposure.
Other Products and Strategies
How advisors will use funds, annuity and other investment products over the next year
Actively managed ETFs stand out as the top choice among financial professionals, with nearly half (48%) planning to increase or start using them over the next year. On the other hand, passively managed mutual funds are the least favored in this category, with just 10% of advisors planning to increase exposure.
