A survey conducted by InspereX in spring 2026 reveals that financial advisors and their clients share remarkably similar anxieties about the economic landscape for the remainder of the year. The InspereX Pulse Survey, fielded by Red Zone Marketing from March 27 to April 7 among 783 advisors at independent broker-dealers, RIAs, banks, and regional firms, found that geopolitics, market volatility, and inflation rank as the top three concerns for both groups.
Geopolitical instability was cited by 43% of advisors and 45% of clients as their primary worry, reflecting ongoing tensions in the Middle East and other regions. Market volatility followed, named by 17% of advisors and 35% of clients, while inflation was flagged by 16% of advisors and 9% of clients. Notably, inflation has overtaken recession as a top-three concern for advisors since the firm's fall 2025 survey.
Despite these shared worries, advisors remain broadly optimistic about equity markets. Seventy percent of respondents forecast the S&P 500 will finish 2026 at least 5% above its survey-period range. Among them, 31% expect a gain of 5% to 10%, 30% anticipate a rise of 10% or more, and 8% project an increase of 15% or more. Just over one-fifth of advisors predicted a decline of at least 5%. Chris Mee, managing director at InspereX, noted that despite challenging first-quarter conditions, most advisors see meaningful upside potential.
Volatility is also driving client engagement. Seventy-eight percent of advisors said market swings increase client communication and provide opportunities to demonstrate value. Another 35% reported that volatility opens doors to referrals and new business. Half of respondents said their practice is operating more on offense than defense during volatile periods, a tendency more pronounced among higher-AUM advisors. Common approaches include reassuring clients about long-term strategy (32%), increasing proactive outreach (31%), and adding or expanding protection strategies (18%).
The survey highlights a significant shift toward protection-oriented strategies. Fifty-four percent of advisors said they expect to moderately or significantly increase their use of such strategies by year-end. The leading reasons: providing peace of mind (71%), reducing or eliminating client risk exposure (67%), and delivering growth alongside protection (64%). When advisors introduce downside protection or defined-outcome products during volatile markets, 39% said the most common result is that assets that would otherwise have gone to cash remain invested, while 37% said the primary outcome is improved client confidence with limited asset movement.
Structured products are now used by 88% of survey respondents. Among those advisors, 59% said they help differentiate their practice, half said they strengthen client relationships, and 49% said they improve the overall client experience. The survey also found that more than three-quarters of advisors plan to maintain (46%) or increase (33%) their use of indexed annuities in 2026. For fixed annuities, 52% plan to maintain and 21% to increase usage, while for variable annuities, 52% plan to maintain and 16% to increase. These trends align with broader industry data: U.S. annuity sales topped $100 billion for the tenth straight quarter, with registered index-linked annuities surging 21%.
Advisors also identified key investment themes driving opportunities through year-end. Geopolitical tensions and global security topped the list, cited by 31%, followed by artificial intelligence and tech innovation (28%) and increased market volatility and risk management (18%). This focus on AI and tech comes as Goldman Sachs reported S&P 500 earnings surged 17% in Q1, the best in 15 years excluding COVID and tax cuts, underscoring the resilience of corporate profits.
The alignment between advisors and clients on concerns and opportunities suggests a shared understanding of the current environment. However, the survey also indicates that advisors are proactively using volatility to strengthen client relationships and differentiate their practices, particularly through protection strategies and structured products. As inflation remains elevated—April CPI rose 0.6%, pushing the annual rate to 3.8%—advisors are increasingly focused on managing risk while seeking growth.
