The Discerning Texan
-- Edmund Burke
Monday, January 14, 2008
Biggest Fear among Financial Advisors: Democrats
Which spectre haunts financial advisers the most? Terrorism? Global unrest? Not even close. According to a survey of over 200 financial advisers taken in December, their biggest worry is that Hillary Clinton will win the presidential election in November:Nothing worries financial advisers more than the prospect of a Democrat's being elected president in November, according to a quarterly poll by Brinker Capital Inc.
The fourth-quarter edition of the Brinker Barometer, which polled 236 advisers in December, found that 22% indicated that a "Democrat in the White House" worried them more than all other economic or geopolitical concerns.
Rounding out the list of concerns was "global unrest" (15%), "U.S. economic growth" (15%), "a terrorist attack" (13%) and "a recession" (13%).
They're less concerned about recession than dealing with the economic policies of a new Clinton administration. They fear that a big increase in taxes will erode equity investments, especially given the proclivity of Democrats to target equity funds for new taxes to pay for their increased spending. Eighty-one percent feel that Democrats will raise capital gains taxes, income taxes, and dividends.
Interestingly, Rudy Giuliani gets the biggest endorsement in the survey. One might have expected Mitt Romney, with his extensive experience in investments, would have generated the most enthusiasm.