Advisor Sentiment Index: Advisor Sentiment Holds Steady
Financial advisors’ views on the health of the economy and the stock market remained steady in August. Many have a positive view of the current climate, but that perspective dims when looking ahead over the next several months.
Confidence in the economy overall dropped slightly in the month, from an index reading of 105 to 102, while sentiment over the stock market remained positively stable at an index reading of 108, equal to July’s response.
In the Advisor Sentiment Index, financial advisors are asked for their view on the current and future state of the stock market and the economy. Results are tallied and weighted, with 100 being a perfectly neutral view. Any index reading over 100 is in positive territory, while under 100 is negative.
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According to the survey, a third of all respondents (34%) consider the current state of the economy positive, down from 50% of advisors who held the same view last month and the lowest level in five months.
Six months from now, 35% of advisors expect a decline in the economy, while 44% see a decline over the next 12 months. Almost as many (40%) see economic improvements a year out.
In written responses to the poll questions, advisors cited persistent inflation as one of the clearest economic concerns, particularly as higher energy costs threaten to put additional pressure on consumers and on discretionary spending. Advisors also point to rising yields, the possibility of higher interest rates and the nation’s growing debt burden as risks that could eventually weigh on both economic growth and financial markets.
Advisors still see the stock market doing better than the overall economy. A decisive majority of respondents (70%) consider the current state of the stock market to be positive, with just 7% expressing a negative view.
Looking six months ahead, respondents expect stability in the stock market (47%). In 12 months, almost half (45%) expect market improvement, while 37% expecting a decline. The remaining 19% see no change. In their responses, advisors place a lot of market faith in the build-out of artificial intelligence technologies. Advisors see AI and related investments as meaningful sources of growth and market opportunity, although some question whether that boom can offset broader economic headwinds.
Methodology, data collection and analysis by Wealth Management and Informa Engage. Data collected August 1-30, 2026. The methodology conforms to accepted marketing research methods, practices, and procedures. 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.
