In a volatile market and economy, it probably should be no surprise that advisor outlook also swings wildly. Advisor confidence in the economy and stock market rose to its highest level in six months during September, according to The Advisor Confidence Index from Rydex/SGI. This measure comes on the heels of the confidence index sinking to its lowest level in 16 months during August.
The ACI rose 16% to 109.08 in September from a month earlier. The rebound in confidence appears to be a result of an overwhelming majority of advisors who were surveyed (75%) said that business tax cuts will help the economy.
The ACI survey also suggests that advisors are becoming more confident in their ability to manage the economic volatility. All four measures of the index increased in September with the most optimism found in the 12-month economic outlook (+13.23%). This compares with the current economic outlook (+6.61%), six-month economic outlook (+7.98%) and the stock market outlook (+4.95%).
Although confidence rose in September, the majority of advisors see little hope for improvement on the unemployment front. More than half of advisors (54%) say that unemployment will remain where it is, while 25% believe that it will worsen and hurt the economy.
“The economy cannot recover without housing. And housing cannot recover without employment. We have a long way to go,” said Peter Wheeler, president and CEO of WheelerFrost Associates in San Diego.