Jun 10
Advisors Face Client Confusion About Crypto, Meme Stocks by Michael Fischer - ThinkAdvisor
What You Need to Know
- Eighty-nine percent of advisors said clients don't understand the volatility of cryptocurrencies, hot ETFs and meme stocks.
- The popularity of such investments reveals a generational divide.
- Fifty-four percent of advisors “refuse” to let their clients invest in these speculative sectors.
Two-thirds of financial advisors in a recent survey from Incapital said clients were confused by their adult children’s encouragement to invest in cryptocurrencies, meme stocks and hot ETFs. And 89% of advisors said clients do not understand the volatility of those sectors.
Although 58% of advisors said their clients were curious about such investments, and 35% said their clients want to invest in these opportunities, 54% of advisors said that they “refuse” to let their clients do so.
Just 43% of advisors said their firms provide them with enough information to educate investors about these types of investments. Nearly half of advisors also reported that their clients have opened electronic trading accounts at other firms.
