InspereX Survey: Financial Advisors See Volatile Path to Equity Gains in 2026

• Equities Expected to Be The Top-Performing Asset Class in 2026; Advisors See at Least a 10% Drawdown on the Way to Gains
• Expect Two-Three Rate Cuts in 2026
• Willing to Extend Risk in Declining Rate Environments to Generate Returns

DELRAY BEACH, Fla.--(BUSINESS WIRE)--According to the Fall 2025 InspereX Pulse Survey of 856 financial advisors released today, the majority of advisors said they expect the S&P 500 to be up 10% or more by year-end 2026 compared to where it was between November 5-12, 2025 (a low of 6720.32 and a high of 6850.92). More specifically:

• 60% expect the S&P 500 to be up 10% or more
• 18% expect the S&P 500 to be down 10% or more
• 22% expect the S&P 500 to be flat

The majority (54%) of advisors believe equities will be the top-performing asset class in 2026 followed by bonds/fixed income (12%) and alternatives (10%).

Despite the bullish outlook on equities, advisors also expect them to be one of the most volatile asset classes. When asked to identify the most volatile asset classes in the year ahead, 48% of advisors said cryptocurrencies, 31% said equities, and 6% said commodities.

Further, 91% expect the market will decline at least 10% at some point of the year; more specifically, 28% expect a drawdown of 10%, 34% expect a drawdown of 15%, 23% expect a drawdown of 20% and 6% expect a decline of 25%. Notably, only 9% said they do not expect a large drawdown in 2026.

To help provide portfolio ballast, 81% of advisors said they will “probably” or “definitely” add more protection strategies to client portfolios in 2026.

“Advisors are cautiously optimistic about market returns in 2026, but expect a high degree of market volatility along the way, with some even bracing for a potential U.S. recession,” said Chris Mee, Managing Director of InspereX. “If advisors are correct, they will be tasked with keeping clients calm and invested throughout the year, and while choppy markets present significant challenges, advisors have proven to be at their best during difficult market environments; I suspect that trend will continue.”

Fed in Focus

Looking ahead to 2026, two-thirds (66%) of advisors expect –two to three rate cuts, 21% expect one rate cut, while 8% expect Fed policy to be neutral. Just 3% expect four or more interest rate cuts and 2% expect one or more rate increases.

When asked about combating the effect of declining interest rates, 81% of respondents said they are preparing to, or have already communicated with clients, about potentially adding more risk to portfolios to achieve desired returns.

Half (50%) of advisors said their target return for most clients is between 6-8%, 36% said they’re seeking returns greater than 8%, and 9% said they aim to generate returns in line with the performance of the S&P 500.

Wall of Worry but Advisors See Opportunity in Volatility

When asked to identify the macro headwinds they’re most worried about, advisors said:

1. Geopolitics (33%)
2. Market volatility (20%)
3. Recession (17%)
4. Inflation (13%)
5. Tariffs (7%)
6. Interest rates (6%)
7. Rising taxes (4%)

According to advisors, inflation remains a top concern for clients. Advisors say clients are most concerned about:

1. Market volatility (29%)
2. Geopolitics (25%)
3. Inflation (17%)
4. Recession (14%)
5. Tariffs (8%)
6. Interest rates (4%)
7. Rising taxes (3%)

While advisors cite volatility as a top concern in the coming year, they also see silver linings in market turbulence:

• 75% said volatility generates opportunities to demonstrate value
• 72% said volatility increases client engagement and communication needs
• 35% said volatility generates more referrals and new business opportunities
• Just 7% said volatile periods had little or no impact on their practice

Asked to gauge their clients’ anxiety levels as it relates to investing right now on a scale of 1-10, with 10 the highest, the average was 5.6, up from 5.1 when measured during the same period in 2024.

“Advisors continue to demonstrate a keen understanding of their clients, their needs and the potential risks to markets and their overall success,” Mr. Mee added. “With better tools, technology, and access to emerging asset classes, advisors have never been better equipped to achieve the evolving needs of their clients and keep them focused on their long-term investment objectives.”

About the Survey – View Survey Report

InspereX is the tech-driven fixed income and structured products distribution and trading firm. The InspereX Pulse Survey was conducted between November 5-12, 2025 by Red Zone Marketing on behalf of InspereX. The 856 financial advisor respondents work at independent broker/dealers, RIAs, banks and regional firms. During the survey period, the S&P 500 high was 6850.92, the low was 6720.32.

About InspereX

InspereX is built on access, aggregation, and analysis. We redefine precision investing across structured products, ETFs, private markets, and new-issue and secondary fixed income. InspereX connects advisors and institutions to differentiated investment opportunities, combining deep market expertise with a modern approach to distribution. Our Aria platform integrates advanced technology, market intelligence, and personalized service to streamline execution and empower advisors to deliver greater value to their clients. InspereX represents more than 400 issuing entities, distributes to more than 1,500 partners, and has distributed more than $800 billion in new issue securities. The firm has seven trading desks and more than 180 employees with offices in Delray Beach, Florida; Santa Monica, California; Charlotte, North Carolina; Chicago, Illinois; and New York, New York.