New York, NY—November 26, 2012 The Advisor Confidence Index (ACI), a benchmark that gauges advisor views on the U.S. economy and stock market, reports that advisor confidence decreased significantly in November, with the index decreasing 11.63% from the October level to close at 84.52.
Survey participants shared their views on the current market environment, with the fiscal cliff proving to be top of mind for many advisors. “The global economy is contracting, earnings are beginning to fall, and the business cycle has not been revoked,” said James Daley of TEAM Financial Managers. “Systemic shocks are not unusual during recessions so a crisis surrounding Greece, the fiscal cliff, or some other issue could just make a bad situation worse.”
“The U.S. economy can progressively come back provided the looming fiscal perils are addressed,” said Rob Siegmann of Financial Management Group. He added, “Corporate earnings are up, the labor market is beginning to turn, the credit market is showing gradual improvement as banks are beginning to extend more loans to consumers and businesses, and the housing market appears to be showing signs of gradual recovery.”
Kenny Landgraf of Kenjol Capital Management LLC said that all eyes are on Washington for more direction on the fiscal cliff and tax rates starting in 2013. He believes that until investors know what capital gain rates will be, they will most likely lock in 2012 rates at 15% and put more downward pressure on equities. “There are more reasons to raise cash than there are to lower cash levels until we understand what the rules of the game are for taxes.”
All four components of the ACI experienced a decrease over the prior month, with the stock market outlook experiencing the biggest percentage change:
Current economic outlook
Six-month economic outlook
12-month economic outlook
Stock market outlook
About Advisor Confidence Index’s Methodology
The Advisor Confidence Index is a benchmark that gauges advisors’ views on the economy. Modeled after the Conference Board Consumer Confidence Index®, the ACI captures the sentiments of 150 independent registered investment advisors (RIAs). The index’s analysis is based on the number of completed surveys and reflects only information from those surveys. This information is intended to be general in nature, and these overviews are no substitute for professional, legal, or consulting advice. This information should not be construed as advice from Rydex AdvisorBenchmarking, Inc. or any of its affiliates.
About Rydex AdvisorBenchmarking, an affiliate of Guggenheim Investments
Rydex AdvisorBenchmarking is a research and analysis center focused on the registered investment advisor (RIA) marketplace. Every year through its survey website, www.AdvisorBenchmarking.com, the firm conducts multiple surveys of advisors, covering a host of business management and investment management practices. The findings and analysis of the data are then released to the marketplace as annual studies, quarterly research notes, monthly newsletters, and a confidence index. The service is aimed at helping advisors grow and enhance their firms by comparing how their businesses fare against other advisors. Advisors also learn best practices of the most successful advisors in the business. AdvisorBenchmarking is an affiliate of Guggenheim Investments.
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