Stock Market Optimism Rises Despite Tariff Concerns

Financial advisors’ faith in the stock market rose yet again in May, jumping almost 30% from the March lows reached in the wake of the Trump administration’s “Liberation Day” tariff policy announcement. Optimism over the economy remained largely unchanged, with only 33% of advisors saying they have a positive view.

Overall, May’s Advisor Sentiment Index indicates advisors have absorbed the shock-and-awe tactics of the Trump administration’s across-the-board tariff announcements earlier this year, which sent markets into a brief tailspin. Investment sentiment has risen since, along with the news that Trump is negotiating agreements with several trading partners even as legal challenges to the policies play out in the courts.

While less than half of financial advisors see markets improving over the next six months, almost seven in 10 (68%) are confident they will do so within a year.)

Anxiety over the economic fallout remains, however. Many respondents repeatedly referenced tariffs as a dominant factor affecting sentiment and economic performance, including continued fears of inflation from tariff-driven price increases, delayed or canceled business investment, and potential consumer pullback. Tariff resolution is seen as a key inflection point for recovery or further decline.

Related:Advisor Sentiment Index: Market, Economic Outlooks Tick Up in April

Advisors are split on how that resolution plays out, with 45% seeing an economic decline over the next six months and 40% predicting improvement. Optimism increases with a longer-time horizon, however, with almost 60% of advisors seeing an improvement.

Methodology, data collection and analysis by WealthManagement.com and Informa Engage. Data collected May 15-19, 2025. 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.