Advisor sentiments around the health of the stock market and the economy remained essentially unchanged through March.
Sentiment in the stock market remained elevated at 122, compared to 123 the prior month, while advisors scored the economy’s health at 110, compared to 109 at the end of March. A response of 100 equals a neutral view.
According to the ASI survey, less than half of the advisor respondents see the current economy as positive, with 56% scoring the current state as neutral or negative.
Looking to the future, advisors predict a slight dip in the economy’s health over the next six months, yet they are far more optimistic about March 2025.
At the same time, two out of three advisors, 66%, say the current state of the stock market is “good” or “excellent.”
While some advisors see the persistence of inflation as a potential threat, more see a coming cut in interest rates as fueling further stock market gains.
While 42% see no material change in the market over the next six months, 33% see an improvement.
Optimism increases when looking further ahead. Asked for their views on the health of the market one year from today, 63% see a net improvement.
Methodology, data collection and analysis by WealthManagement.com and Informa Engage. Data collected March 14-25, 2024. Methodology conforms to accepted marketing research methods, practices and procedures. Beginning in January 2024, WealthManagement.com began promoting a brief monthly survey to active users. Data will be collected within the final ten days of each month going forward, with a goal of at least 100 financial advisor respondents per month. Respondents are asked for their view on the economy and the stock markets both currently, in six months and in one year. Responses are weighted and used to create an index tied to a neutral value of 100. Over time, the ASI will provide directional sentiment of retail-facing financial advisors.