Clients know what they should do. But too often they take no action. Why the disconnect? They can’t reconcile bullish long-term outlooks with their fear of taking risks, according to UBS's quarterly Investor Watch study.

While the economic recovery and market gains have exceeded expectations since the financial crisis, some clients are worried about getting back in the game. There's an apparent conflict between beliefs and actions: Clients are aware that investing is the best way to build wealth, but they are anxious about losses along the way.

Moreover, with a new spate of market volatility added to the mix, nearly a quarter of investors fear another recession is on its way. The good news for advisors? Investors who have comprehensive financial plans have more confidence about braving downturns and negotiating volatile markets.

Click through to see the study's findings or here for a slideshow version.

Read more: