Crystal Ball

When asked in late 2007 what issues would have the most significant impact on businesses in 2008, advisers were most concerned about market performance/volatility (58%), retiring Boomers (54%), and the real estate bubble and credit crunch (tied at 49%).

Further, the majority of advisers (75%) say they will spend most of their time in 2008 discussing retirement with their clients, according to a survey of financial advisers by OppenheimerFunds, Inc.

Advisers’ concerns in general for 2008 are: the real estate bubble (76%), credit crunch (73%), and the 2008 presidential election (70%).

Recession Worries

The majority of financial advisers do not think a recession is likely in 2008; only 1% of advisers believe that a recession is very likely and 26% of advisers indicate that 10% or less of their clients have expressed fears or concerns regarding the possibility of a recession.

“Advisers are optimistic about global markets,” said economist Brian Levitt, in an Oppenheimer press release. “One of our key themes for 2008 is “global for the long term” and we share the view that there are great investment opportunities around the world. It’s good to see that advisers are thinking broadly across a mix of asset classes.”

Asset Classes

In fact, advisers are so optimistic about 2008, 82% of survey respondents say that it is feasible for one particular asset class to achieve double-digit returns in 2008—most probably, according to advisers, global stocks (cited by 41%) and growth stocks (27%).