Financial advisor confidence in both the overall economy and the stock market recovered somewhat in April 2025, after falling to a 12-month nadir in March. That said, confidence in the stock market remains low compared to prior months, having barely crept above a neutral reading. Only 42% of surveyed advisors expect the economy to improve over the next six months, while half expect improvements in the stock market over the same time period.
The WMIQ Advisor Sentiment Index is a monthly poll of registered investment advisors meant to gauge their feelings around the health of the markets and the economy. The index is scaled against a completely neutral view (a reading of 100). An index reading above the baseline reflects positive sentiment, while a reading below demonstrates more pessimistic views.
The most frequently cited issue in the latest survey was the uncertainty stemming from Trump’s tariff plans, which many believe are artificial or politically motivated disruptions to economic fundamentals. Some advisors said they see temporary opportunities to buy quality stocks at low valuations thanks to the recent market turmoil, while others predict severe long-term consequences, including recession or global instability. Many emphasized the lack of predictability in trade negotiations and their effects on business planning and market confidence.
The survey was fielded before the Trump administration seemed to reach temporary trade agreements with the U.K. and China, among others.
Despite the pessimism, many advisors maintain long-term optimism about the U.S. economy, citing strong fundamentals such as employment, consumer confidence and corporate earnings. Several noted that the recent pullback is a normal correction from historic highs.
Methodology, data collection and analysis by WealthManagement.com and Informa Engage. Methodology conforms to accepted marketing research methods, practices and procedures. In January 2024, WealthManagement.com began promoting a brief monthly survey to active users. Data is to be collected within the final 10 days of each month, 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 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.
#Market #Economic #Outlooks #Tick #April