Advisors Stay Bullish as Volatility Reshapes Portfolio Strategy

Despite a volatile start to the year, financial advisors are increasingly optimistic on equities and are leaning into new tools to manage risk and client behavior, according to the latest survey from InspereX.

The Spring 2026 InspereX Pulse Survey, which polled 783 advisors, found that 70% expect the S&P 500 to rise by at least 5% by year-end, with 30% forecasting gains of 10% or more and 8% anticipating upside exceeding 15%. Only 21% expect a decline of 5% or more, signaling broadly constructive sentiment despite persistent macro uncertainty.

“Despite challenging market conditions in the first quarter, the majority of advisors see the potential for meaningful upside in the remainder of the year,” said Chris Mee, managing director at InspereX.

Geopolitics remains the dominant concern for both advisors and clients, cited by 43% and 45%, respectively, followed by market volatility and inflation. Notably, inflation has re-emerged as a top concern for advisors, overtaking recession fears from late 2025.

Volatility, however, is proving to be a double-edged sword. While 39% of advisors report increased workload and stress, 78% say it boosts client engagement and creates opportunities to demonstrate value. Additionally, 35% report increased referrals and new business during volatile periods.

Advisors are increasingly deploying downside protection strategies, with 54% planning to expand their use. These tools are helping keep clients invested, with 39% of advisors noting assets that might have moved to cash are instead staying in portfolios.