What type of analysis do financial advisors perform to assist clients?

Financial advisors typically use a blend of qualitative and quantitative analysis to assist clients effectively. Quantitative analysis involves the use of numerical data to assess financial metrics, such as investment returns, risk levels, and market trends. This quantitative data provides a rigorous framework for making informed decisions and measuring performance.

On the other hand, qualitative analysis focuses on non-numerical factors, such as a client's goals, preferences, attitudes toward risk, and overall financial situation. Understanding these qualitative aspects is crucial for tailoring financial strategies that align with the client's values and long-term objectives.

By integrating both types of analysis, financial advisors are better equipped to provide comprehensive advice that addresses clients’ needs holistically. This approach ensures that recommendations are not solely based on numerical data but are also sensitive to the personal circumstances and aspirations of clients.