Financial advisors’ confidence in both the overall economy and the stock market was essentially unchanged in October.
According to the latest monthly reading of the Advisor Sentiment Index, advisors were slightly more optimistic about the prospects for the stock market, rising two points to a reading of 122. At the same time, sentiment on the economy, at a reading of 106, remained unchanged from the previous month.
The ASI is a monthly survey of financial advisors to gauge their sentiment on the stock market and the economy. A benchmark of 100 reflects an entirely neutral view, while any reading above 100 indicates positive sentiment, and below 100 a negative view.
Respondents are divided on the current state of the economy, with 42% considering it positive and 41% considering it “average.” Only 17% take a negative view.
Most respondents (71%) consider the current state of the stock market to be positive, while just 9% expressed a negative sentiment.
Though in positive territory, advisors’ views on the 12-month prospects for both the economy and the stock have dimmed slightly since June, when future expectations were at their highest.
For the economy, 31% expect a decline, up from the June ASI reading, when only 21% expected a less healthy economy in a year. Still, slightly less than half (47%) expect the economy to improve by this time next year.
Similarly, sentiment around the 12-month prospects for the stock market is healthy, but markedly lower than it was over the summer following the Trump administration’s softening its threat to impose widespread tariffs on trading partners.
In June, only 20% of advisors predicted a less healthy stock market a year from now. Today, 33% are more pessimistic.
Still, over half (52%) have an optimistic view of markets over the next 12 months.
