The firm's retirement arm conducted research into adviser behaviour, questioning 250 financial intermediaries in the process.
Almost nine out of ten advisers agreed that markets would remain unstable for the next few months, with 36 per cent revealing that they are advising customers against taking on further investments in equity-based markets.
In addition, the housing market looks bleak for close to half of advisers who believe it will take a more pronounced downturn over the next six months.
Although advisers appear to be a lot less confident on the whole, 79 per cent believe that the investment side of their business will grow over the next five years.
Ray Chinn, head of pensions at LV= said that whilst advisers were erring on the side of caution with their investment decisions, it was important to remember that they play a 'vital role' when it comes to building up clients' retirement portfolios, through both the good times and the bad.
Putting a more optimistic slant on current conditions, Steven Daniels, managing director of LV= Asset Management added: "We agree that market volatility is likely to continue in the coming months. Nonetheless, the economic outlook – the main cause of current concerns – should improve as expected interest rate cuts come through.
"For clients holding long-term investment products, and assuming that their financial circumstances and goals have not changed - we don’t see the current period of volatility as a cause for concern.
"For those considering establishing or increasing their exposure to long-term investments, current market conditions may represent a good buying opportunity.”
