As of Wednesday, Dec. 10, the S&P 500 is up a tidy 18.3% since the start of the year. The MSCI EAFE Index is up a staggering 30%. Encouraging data points and they explain why registered investment advisors (RIAs) are bullish on stocks heading into 2026.
On Wednesday, InspereX released its Fall 2025 InspereX Pulse Survey, which queried 856 advisors, noting 60% of those polled expect the S&P 500 to be appreciate at least 10% from where it was between Nov. 5 and Nov. 12 when the index traded in a range of 6720.32 to 6850.92.
“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%),” according the poll.
“At least 10%” is an arguably restrained call, but it may appropriate in terms of managing client expectations. After all, the S&P 500 has returned 297.5% over the past decade, meaning it’s nearly quadrupled, implying that even if 2026 is a positive year for the gauge, it could be of the modest variety.
Advisors Are Realistic
Among the myriad reasons for prospects to go from that status to client is the perspective offered by advisors. Said another way, reality checks are often warranted on an investor’s journey and now may be a good time to remember that. While advisors are constructive on equities for 2026, the good ones aren’t going to fill clients’ heads with false hope.
“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,” adds InspereX.
Another reasons clients will want to lean advisors next year and why advisors are likely to “earn their pay” are expectations, warranted at that, that next year’s expected climb for stocks won’t be “easy money.”
“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,” according to the survey.
What Advisors, Clients Are Worried About
An encouraging sign on the advisor/client relationship is that the two cohorts are very much aligned in terms of what they’re worried about with 2026 looming. Fifty-three percent of advisors said they’re concerned about geopolitics and market volatility next year while 54% said they believe clients feel the same way, according to InspereX.
As for the pesky issue of inflation, 13% of advisors said that’s a source of concern while 17% of clients feel the same way. InspreX points out that advisors say that on a scale of 1 to 10, clients’ anxiety if 5.6 today, up from 5.1 a year ago. So it can be said do-it-yourself investors may want to strongly consider working with advisors in 2026.
“Advisors continue to demonstrate a keen understanding of their clients, their needs and the potential risks to markets and their overall success,” said Chris Mee, Managing Director of InspereX. “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.”
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