Client Confidence Returns to Pre-Dip Levels, But Advisors Keep Trimming Equity Exposure
June extended a trend that’s been building for several months. More clients said they felt positive about both the markets and their own financial future, while advisors continued taking a measured approach to portfolio construction.
Every month, Nitrogen analyzes more than 1,000 advisor-generated portfolio proposals to understand how advisors are responding in real time. June’s data tells a different story. Advisors stayed active, but they didn’t meaningfully increase portfolio risk.
Signal 1: Client mood
Client optimism continued to build in June. Eighty-two percent of clients said they felt positive about the markets, up from 79% in May. The gain was smaller than May’s jump, but it suggests the rebound in confidence is continuing. Clients appear increasingly comfortable with the current market environment.
Check-ins: “How are you feeling about the markets?”
Check-ins: “How do you feel about the markets?”
Confidence in personal finances also improved. Eighty-two percent of clients said they felt positive about their financial future, compared with 80% in May. That result stands out against a backdrop of lingering inflation concerns and uncertainty around interest rates, suggesting many investors remain focused on their long-term financial picture.
Check-in: “How are you feeling about your financial future?”
For advisors, that’s an encouraging combination. Clients who feel more confident may be more receptive to planning conversations, portfolio reviews, and other proactive discussions that can be harder to have when market anxiety is driving every meeting.
Signal 2: Risk posture
Advisors proposed slightly less equity exposure in June. Equities made up 48% of proposed allocations, down from 52% in May. Fixed income held at 8%, while uncategorized allocations rose to 44%.
June Advisor Proposal Shifts
This looks like a measured adjustment, not a broad move away from risk. Equity exposure moved lower, but stayed within the range advisors have used across recent months.
The better read is that advisors were being selective. Client confidence improved, yet advisors continued maintaining meaningful equity exposure without pushing portfolios further into risk.
Signal 3: Liquidity positioning
Cash and money market allocations remained a meaningful part of June proposals. Money market allocations represented roughly 6.7% of total proposed volume in June, compared with 7.3% in May.
June Money Market Allocations vs. Total Proposed Volume
Cash remained one of the most frequently proposed holdings, even as its share of total proposed volume eased. Advisors appear to be keeping liquidity available while continuing to position portfolios for participation.
That balance reflects June’s broader story. Client confidence improved, but advisors continued leaving themselves room to adapt as conditions evolve.
Signal 4: Advisor activity
Advisor proposal activity increased in June. Average daily proposal volume rose to $1.30 billion, up from $1.23 billion in May. Average daily proposals generated also moved up to 1,160, compared with 1,140 in May.
June Average Daily Proposal Volume
The increase wasn’t dramatic, but it was consistent. Advisors continued reviewing portfolios, building proposals, and helping clients make thoughtful decisions while remaining disciplined in their recommendations.
Signal 5: Concentration
The most frequently proposed investments in June were familiar names. Cash and money market vehicles led the list, followed by broad-market ETFs and funds such as SPY, IVV, IWV, FXAIX, VOO, and AGG. Apple, Nvidia, and the Schwab Value Advantage Money Fund also appeared among the top recurring products.
June Top Products Proposed
Broad index exposure remained central to portfolio construction. Technology exposure was still visible through Apple and Nvidia, but the overall list points more to core positioning than aggressive repositioning.
Advisors continued to express conviction through familiar, liquid building blocks. The product mix suggests they were refining portfolios rather than making major allocation changes.
Confidence returned, and discipline stayed
Client confidence continued to build in June, but portfolio changes remained measured. More clients said they felt positive about both the markets and their financial future. At the same time, equity allocations edged lower and familiar core holdings continued to anchor portfolios.
Taken together, the data suggests advisors weren’t letting stronger sentiment drive portfolio decisions. They continued refining allocations and engaging clients while keeping long-term plans at the center of the conversation.
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 in August.