Surprise! Financial advisors — well, at least 125 surveyed by SEI — say they want Mitt Romney to become the next POTUS. Given that the U.S. is essentially bankrupt (that is, the net present value of the gub’ment’s future promises), I am hardly surprised. The Peter G. Peterson Foundation’s 12 May survey revealed that 81% of voters polled say they regard the national debt is a “major” problem that must be addressed now. That includes 69% of Democrats and 94% of Republicans. 86% of voters agree that reducing the deficit would help the economy. Says, the book IOUSA, “The budget deficit section highlights the $53 trillion in unfunded benefits (medicare, medicaid and social security) that will come due and can only be paid by tripling taxes or cutting all government spending except for that to those programs.” How do you make a financial plan, a long-term financial plan around that? If you have any ideas, let me know.
As for out-of-control gub’ment spending, Rich Lowry in the New York Post today writes, “As a share of GDP, spending has been at post-World Warr II highs throughout [Obama's] term. If fiscal probity is truly his aim, Obama is a miserable failure of a skinflint.”
Here is what our friends at SEI found: “In a recent survey conducted by SEI (Nasdaq: SEIC) of more than 125 advisors, most want Mitt Romney to win in November while a majority believes that Barack Obama will win. This offers an interesting insight into advisor sentiment, but perhaps more importantly advisors should be considering how the eventual outcome could effect the markets and their clients’ portfolios.
“Advisors were also asked about a number of broader issues related to the overall state of the economy. An overwhelming majority believes that the economy will recover but that it will take time while two thirds of advisors believe that the pessimism bubble is here to stay.”
About the study: “SEI conducted the survey in May 2012 at its National Strategic Advisor Conference for more than 125 advisors that partner with SEI. The advisors, evenly distributed around the country, are industry veterans primarily managing large books of business. Half of the advisors have been in the business more than 20 years and an equal percentage manage more than $150 million in assets.”