WMIQ advisor market sentiment falls to 115 as economic outlook improves

Financial advisors’ confidence in continued stock market gains weakened in September even as their assessment of the U.S. economy improved, according to the WMIQ Advisor Sentiment Index from WealthManagement.com. The market reading fell three points to 115, 12% below the index’s all-time high reached in May. A reading of 100 represents a neutral view. Economy sentiment rose four points to 106.

Only 10% of respondents hold a negative view of the market’s current performance. Their six-month outlook is more divided: 39% expect a decline, 34% expect improvement and 26% expect stability. The share with a negative near-term view is at its highest point in five months, the survey says. Over 12 months, 41% expect improvement and 37% expect a decline.

On the economy, 41% of respondents call current conditions positive and 42% call them average. Six-month expectations are split three ways: 33% expect improvement, 34% expect no change and 33% expect a decline. The 12-month view tilts slightly more positive, with 43% expecting improvement against 36% expecting a decline. A substantial share of respondents’ comments tie the outlook to elections, congressional control, federal policy, government spending and national debt.