Advisor Sentiment Index: Advisors See a Cloudier Economic Future
Financial advisers’ confidence in the overall economy and equity markets fell last month after reaching record highs in May.
Overall, advisers’ sentiment about the health of the economy fell 12 percent to a reading of 106, while their sentiment about the stock market’s optimism fell 8 percent to a reading of 121. Wealth management IQ Advisor Sentiment Index, a monthly survey of financial advisors.
A reading of 100 indicates a completely neutral view. Index levels above 100 indicate a positive outlook, while levels below 100 indicate negative sentiment.
While 44 percent of respondents view the current economic situation as positive, only 5% view it as “very good.” One in four (27%) have a negative view.
The resurgence of international diplomacy and inflation concerns are prompting many advisers to reconsider their views on the country’s financial health.
But even if sentiment is in the positive range, 43% of consultants expect the economy to slow by this time next year. An almost equal number (46%) expect improvement. Still, this sharp downturn has been expected since the ASI began investigating advisers two years ago.
Advisors continue to view the stock market’s prospects more positively than the overall economy. The majority of respondents (66%) consider the current state of the stock market to be positive, while 10% express a negative view.
Looking a year ahead, 50% expect an improvement and 34% expect a decline in the stock market.
A recurring theme among survey respondents was the disconnect between a strong stock market and the financial realities facing many consumers and small businesses. Advisors describe a “K-shaped” economy in which investors and high-income households continue to benefit from rising asset prices, while inflation, housing costs and everyday expenses continue to struggle for many Americans, leading some to question whether headline market gains accurately reflect overall economic health.
Methodology, data collection and analysis by Wealth Management and Informa Engage. Data collected from June 1 to 30, 2026. The methodology conforms to accepted marketing research methods, practices and procedures. Respondents are asked their views of the economy and the stock market, six months from now and one year from now. Responses are weighted and used to create an index tied to an independent value of 100. Over time, ASI provides a sense of direction for retail financial advisors.
