According to the latest Barings Investment Barometer, 92% of intermediaries cited the sovereign debt crisis in Europe as the biggest macroeconomic challenge, up from 84% in Q1.
Meanwhile 72% said clients were worried about the impact inflation was having on their cash deposits, with 67% unfavourable towards cash as an asset class as a consequence.
This marries with a survey from Schroders which stated UK investors’ biggest financial worry is the impact of inflation over the next year.
The implication of fears around the eurozone meant three in five (59%) of IFAs are either ‘quite’ or ‘very’ unfavourable towards European equities.
Meanwhile, an overwhelming 91% of advisers are favourable towards both emerging markets and Asian equities and an even greater percentage (94%) are positive towards US equities.
Portfolio diversification was seen as a key way to help clients through the current market volatility, alongside more regular reviews of investment portfolios to make sure risks are properly managed.
