Client Confidence Jumped 13 Points. Portfolios Barely Moved.

May brought the kind of optimism that can tempt portfolios off-plan. The data shows advisors didn’t take the bait.

Markets reached new highs. The anxiety that defined March and April faded fast. And yet, when you look at how advisors actually repositioned client portfolios, the story isn’t a rush to risk. It’s a remarkably steady hand.

Each month, Nitrogen analyzes more than 1,000 advisor-generated portfolio proposals per day to better understand how advisors are adjusting portfolios in real time. In May, the data showed improving client sentiment, higher equity allocations, and steady proposal activity.

Signal 1: Clients Came Back to the Table

The sentiment recovery in May was sharp. Nearly 79% of clients said they felt positive about the markets, up 13 percentage points from 66% in April, and well above the 52% low recorded during March’s volatility spike.

May Check Ins: How Do You Feel About the Markets?

Confidence in personal financial futures followed. 80% of clients reported feeling confident about their financial outlook in May, up from 74% in April. This is the second consecutive month of improvement.

May Check Ins: How Are You Feeling About Your Financial Future?

One data point worth noting: advisors sent an average of 431 check-ins per day in May, down from 646 in April and a peak of 862 in March. The timing suggests — though doesn’t confirm — that advisors were leaning into proactive client communication during the height of the volatility, then pulled back as conditions stabilized and clients found their footing again.

Signal 2: Advisors Moved Into Equities. Carefully.

With sentiment recovering and markets hitting new highs, advisors did increase equity exposure in May. Equities accounted for 52% of proposed allocations, up from 50% in April. Fixed income held flat at 8%.

May Advisor Proposal Shifts

Two percentage points. That’s the magnitude of the move. Advisors increased equity exposure but didn’t chase the rally, keeping allocations within the range they’ve held all year.

Signal 3: Cash Stayed in the Picture

Money market allocations ticked up in May, reaching 7.3% of total proposed volume, compared to 6.9% in April.

May Money Market Allocations vs. Total Proposed Volume

The increase came during a month when client confidence improved, and advisors modestly increased equity exposure. Advisors put more capital to work while maintaining liquidity for future opportunities and client needs.

Signal 4: Proposal Activity Held Steady Into Recovery

Average daily proposal volume came in at $1.23 billion in May, essentially flat from $1.22 billion in April.

May Average Daily Proposal Volume

Advisors generated an average of 1,134 proposals per day in May. Markets were calmer, client confidence was up, and advisors kept working at the same pace.

That kind of sustained activity during a recovery month tends to signal that advisors are actively helping clients get positioned, instead of waiting for clarity.

Signal 5: Core Holdings Continued to Dominate

The most frequently proposed investments in May were familiar names. Cash and money market vehicles topped the list, followed by broad-market ETFs such as SPY, IVV, and VOO. Apple, Microsoft, and Nvidia were also among the most commonly proposed holdings.

Advisors continued to favor liquid, widely used investment vehicles. Even as client confidence improved and equity allocations moved higher, proposed portfolios relied heavily on established building blocks rather than specialized strategies.

Growth-oriented investments remained well represented, particularly through large-cap technology stocks and index funds. The overall picture was steady portfolio construction, without dramatic repositioning.

Confidence Surged. Portfolio Changes were Modest.

Investor sentiment recovered faster than portfolios moved. Confidence in the markets jumped 13 points. Equity allocations moved 2. Cash inched up. Proposal volume held.

That gap between how clients feel and how advisors are positioning them is worth paying attention to. It suggests advisors are doing exactly what they should, letting plans drive decisions, not headlines.

See how advisors use Nitrogen data and Risk Number® insights to guide client conversations through changing markets. Book a demo today.

About Nitrogen Signals & Shifts

Each month, Nitrogen analyzes proposal and sentiment data from across its platform to help advisors understand what’s driving client decisions. With more than 1,000 proposals created daily, these insights highlight how advisors adapt and how investors stay invested. Thank you for reading this edition of Nitrogen Signals & Shifts. The next issue will be published mid-July. Subscribe at the top of this post so you never miss an update.