Despite continuing uncertainty around ongoing geopolitical conflicts, global trade pacts, and higher U.S. government budget deficits, financial advisors say they are feeling stronger about the markets and the economy than they have at any point during the first six months of the year.
Data from the WMIQ Advisor Sentiment Index shows advisor optimism over the economy rising 10% over May, to a reading of 117, the same level it was at the beginning of the year (a reading of 100 reflects an entirely neutral view).
Only 12% have a negative view of the economy, with almost half (47%) indicating an optimistic view. Only two out of ten advisors surveyed (21%) predict the economy will be worse off by June 2026, while 62% see economic improvements over the next year.
In their responses to the ASI survey, many advisors said they remain cautiously optimistic, noting signs of resilience in GDP growth, consumer behavior, and market momentum. However, some tempered their optimism by noting the need for favorable policy developments—such as rate cuts and geopolitical stabilization—to sustain or accelerate growth.
Optimism in the stock market also rose, jumping over 12% from the prior month to 127, closely equal to advisors’ sentiment in January. Most respondents (61%) consider the current state of the stock market to be positive, while just 7% expressed a negative sentiment.
And most advisors expect the positive sentiment to continue. Respondents are optimistic about the state of the stock market six months from now, with 57% expecting an improvement. That optimism increases twelve months from now, with 68% expecting improvement.
Even so, some respondents flagged deeper, systemic issues—notably rising national debt, potential dollar devaluation, and fears of an overheated or artificially inflated market. Some also pointed to a disconnect between market valuations and economic fundamentals, expressing skepticism about the sustainability of current market valuations.
While macro-level risks dominate, some advisors expressed optimism around structural tailwinds like AI-driven disruption and ongoing strength in the tech sector. These forces are seen as catalysts for long-term growth, especially for firms and investors positioned to capitalize on rapid digital transformation.
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.
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