A study shows too many advisors may be overly focused onshort-term market movements when managing retirement assets.

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Related: Advisors concerned about fiduciary rule, marketvolatility

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According to the latest Fidelity Advisor Investment Pulse study fromFidelity Institutional Asset Management, the combination of marketvolatility, regulatory reforms and political and macroeconomicshifts made advisors nervous during the first half of the year,which in turn made them focus on portfolio management to helpclients through the uncertainty.

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Related: Target-date fund participants least likely to reactin down market

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Through the first half of the year, the study found, portfoliomanagement was the top theme, with more than 26 percent of advisorssurveyed citing it as an area of focus. Market volatility followed,with nearly 26 percent of advisors focusing on that, withdevelopments in the regulatory and political landscape coming in atthird place, claiming the attention of 18 percent ofrespondents.

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Looking at just the second quarter of 2016, the results weresimilar, with 27 percent of respondents focused on portfoliomanagement, 23 percent concerned about market volatility and 21percent watching regulatory and political developments.

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However, moving toward a “multiple time horizon” angle couldhelp advisors in identifying the ideal mix of risk and return fortheir clients.

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Fidelity pointed out that over a 1-to-12-month period — a“tactical lens” — geopolitics, investor sentiment and flows arefactors that can lead the market to deviate from longer-termtrends. Although this can lead to investment opportunities andprovide entry and exit points, such a short time horizon isn’tadvisable for evaluating portfolios.

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A 1-to-10-year term, or “business cycle” time horizon is moreconnected to factors such as corporate earnings, credit growth andinventories that are more tied to the state of the economy. Thislonger cycle provides an opportunity to educate clients about theimportance of diversification, since asset performance may be lessreliable in what is currently a mix of mid- and late-cycle dynamicsin the U.S. economy.

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Finally there is what Fidelity terms a “secular lens” — viewingportfolios with regard to a 10-to-30-year timeframe during whichdemographic shifts, productivity changes, and other macroeconomictrends may influence asset performance.

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