Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.

Today we're discussing a new study showing that more than a quarter of self-guided investors foresee themselves wanting a financial advisor in the next 12 months — and what advisors need to do to capture this market.

So, let’s get into the Industry Chatter!

But first, did someone forward you this email? Click here to subscribe!

Lastly, if you would like to be featured in our upcoming Advisor Spotlight and showcase your business in front of all our subscribers, click here to send us an email.

INDUSTRY CHATTER

27% of DIY Investors Want a Financial Advisor in the Next 12 Months

Self-guided, DIY approaches to investing are more popular than ever, spurred on by the rise in stock screeners, trading platforms, AI, and investing data sites. But according to a new survey, 27% of them are likely to use a (human) financial advisor in the next year.

That number grows to 37% when considering only DIY investors in the Millennial and Gen Z generations, according to J.D. Power's 2025 U.S. Investor Satisfaction Study. The same study shows that Inventors under 40 account for only 11% of clients at wealth management firms, 20% at retirement firms, 26% at banks, and 42% at fintech firms.

Opportunity and Challenge for Advisors

This presents a huge opportunity for financial advisers to capture new clients, and especially younger, self-directed ones that promise a longer relationship.

But the same study also points out several hurdles that advisors must overcome to capture these clients. These investors are used to AI, fintech, and other digital investing solutions, so ease of use and doing business with a financial advisor is crucial. In the study, DIY investors ranked that as the fourth-most important criteria. Access to digital channels also came in the top seven.

DIY Investors Require a Different Approach

More important even than that was trust, product offerings, and people. In other words, relying on brand or name recognition isn't enough. Financial advisors must offer products and services that are easy to use, engender trust, and work well with the self-guided investment platforms and strategies the investors are already using.

Most importantly, the advisers need to be knowledgeable, respectful of the investors' choices, and be able to fit in with their DIY approach, for example by offering services outside the core investment space. After all, the study reveals that 41% of DIY investors chose that approach because they consider finances and investments simple enough to self-manage, and the same share do it because they enjoy self-managing finances and investments.

Providing estate, tax, and other related services can help win over these clients without clashing with their stated preferences. A more personalized approach is needed to win over this DIY crowd.

MARKET RECAP

Tesla Notches Ninth Negative Week; Fed Sees More Inflation, Less Growth Yet Powell Labels Tariffs Effect As 'Transitory': This Week In Markets

Wall Street remains on edge as investors adopt a cautious stance amid an increasingly uncertain economic outlook. At its March meeting, the Federal Reserve kept interest rates unchanged at 4.25%-4.50%, signaling "no rush" to adjust its monetary policy.

Yet, the central bank's latest economic projections painted a less optimistic picture, with lower growth forecasts and higher inflation expectations for the coming years.

The Fed now expects real GDP growth to slow from its December forecast of 2.1% for 2025 to 1.7%. Growth estimates for 2026 were revised downward from 2% to 1.8% and 2027 was lowered from 1.9% to 1.8%.

The Personal Consumption Expenditures price index — the Fed's preferred inflation gauge — is now projected to hit 2.7% in 2025, up from 2.5% previously. Broader price pressures for 2026 were also revised higher, from 2.1% to 2.3%, signaling persistent inflation risks.

In short, the latest projections suggest a more stagflationary environment — something Fed Chair Jerome Powell had categorically dismissed last year, when he quipped that he saw "no stag, nor flation" on the horizon.

During his press conference, Powell attempted to quell market fears over a potential recession and the inflationary impact of tariffs. He reaffirmed confidence in the U.S. economy, highlighting its resilience and low recession risk, while acknowledging lingering uncertainty in the outlook.

His characterization of Trump's proposed tariffs as "transitory" raised eyebrows among economists  — particularly given his prior misjudgment in labeling post-COVID-19 pandemic inflation as short-lived.

Boeing Co. (BA) emerged as the week's top performer in the S&P 500, surging double digits in its best weekly performance since July 2023. The rally was fueled by a multibillion-dollar contract to design and manufacture a next-generation fighter jet for the U.S. Air Force, beating out rival Lockheed Martin Corp. (LMT).

Tesla Inc. (TSLA)'s decline persisted, now down more than 50% from its peak, marking its ninth consecutive negative week — a record losing streak since the company went public in 2010. In Elon Musk's empire, SpaceX has now officially overtaken Tesla as his most valuable asset.

NVIDIA-GM Alliance: At the GPU Technology Conference, NVIDIA Corp. (NVDA) CEO Jensen Huang unveiled a new collaboration with General Motors Co. (GM) to advance next-generation self-driving vehicles. This partnership intensifies competition with Tesla in the growing robotaxi market.

THE WEEK AHEAD

US consumer confidence, home sales, and meme stock earnings

Economic Data

• Monday: Chicago Fed national activity, S&P’s preliminary global PMI

• Tuesday: US consumer confidence and monthly new home sales

• Wednesday: US oil and gasoline inventories

• Thursday: US quarterly GDP and initial jobless claims

• Friday: US core PCE inflation numbers

Earnings

• Monday: Wag Group (PET), Intuitive Machines (LUNR)

• Tuesday: Canadian Solar (CSIQ), McCormick & Co. (MKC), GameStop (GME)

• Wednesday: Dollar Tree (DLTR), JinkoSolar Holding (JKS), Chewy (CHWY)

• Thursday: ADC Therapeutics (ADCT), The Beachbody Co. (BODI)

• Friday: Galaxy Digital Holdings (GLXY)

Click here for the full calendar of economic data and earnings reports.

LEARN WITH BENZINGA PRO