Survey Finds Advisors More Pessimistic About Economy
In apparent agreement with the general outlook of consumers, financial advisors these days are growing more pessimistic about the economy, according to a new index report.
The Advisor Confidence Index (ACI), a recently started survey that specifically measures the outlook of financial advisors, has slipped for the second month in a row.
"Advisor confidence may remain morose due to the uncertainty of potentially rising interest rates, rising oil prices, the Iraqi War, turmoil in the Middle East and the November elections," says Marya Ivanova, a research analyst with AdvisorBenchmarking.com, a Rydex Investments affiliate that started the index.
That index survey found that advisor confidence levels in August decreased nearly 6% from a month earlier, dropping from 115.36 to 122.96. The index had been at 129.07 in June.
Advisors‚ view of the economy over the next six months fell the most, falling 7.94% since July. Advisors outlook on the current state of the economy dropped 7.32%. The 12-month outlook dropped 3.22% and the stock market outlook fell 6.18%.
Some of the advisors participating in the index survey cited different reasons for their worries, according to AdvisorBenchmarking.
"The most recent drop in the market merely underscored the tenuous nature of market movements until the elections are over," Deena Katz, of Evensky, Brown & Katz in Coral Gables, Fla., told the survey.
"We expect continued volatility as individuals worry about terrorists and the election," says Patricia Raskob of Raskob Kambourian Financial Advisors in Tucson, Ariz. "The media continues to stir the pot with as much fear as they can generate, and keep the population more unsettled."
Fiserv Consolidating Trust Companies
Hoping a unified trust organization will lead to efficiency and better recognition, Fiserv Inc. announced it is merging its four trust companies into one unit.
The move will combine First Trust Corporation, Lincoln Trust Company, Resources Trust Company and Retirement Accounts Inc. into one company, which will be named Fiserv Investment Support Services (Fiserv ISS) and be based in Denver, the company announced.