Over half of financial advisors have a favorable view of the economy overall, while a third (35%) consider it “average.”
The level of optimism is expressed in the recent Advisor Sentiment Index, a monthly reading of financial advisors’ views on the current and future health of the economy and the investment markets.
Sentiment over the economy registered at 118, in line with previous months and close to an all-time high of 120 seen at the end of 2024. (A reading of 100 is completely neutral.)
Advisor optimism over the economy’s continued health persists into the future, though long-term, the outlook has diminished slightly. The percentage of advisors seeing the economy’s health declining over the next 12 months increased four percentage points to 29% this month.
Meanwhile, sentiment over the investment markets remains elevated at an index reading of 126. While higher than the historical average, the index is two percentage points below the previous month. This is the second month in a row that the index has slightly dipped, though the survey was fielded prior to the recent Federal Reserve decision to lower interest rates.
About a quarter of advisors perceive the stock market as overpriced, with high valuations driven by a few sectors, particularly tech. Many respondents anticipate a correction in the near future, viewing it as necessary for sustainable growth and market stability.
Advisors’ have a high level of confidence in the current stock market, with 75% seeing the current state as positive. Just 5% expressed a negative sentiment. Still, a quarter of advisors consider current market valuations as high and expect some retreat on prices over the next several months. About a quarter (27%) of advisors predict a decline in market health over the next year.
Methodology, data collection and analysis by WealthManagement.com and Informa Engage. Data collected August 8-21, 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 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.
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