Advisor confidence rose in September, according to Rockville, Md.-based AdvisorBenchmarking Inc., an affiliate of Rydex Investments, which recently released the September results for the Advisor Confidence Index (ACI)-a benchmark that gauges advisors' views on the U.S. economy and markets.
According to the ACI, advisor confidence levels jumped last month. The index rose to 121.08, nearly 5% above its 115.36 August levels. Advisors believe economic and earnings growth will be positive after the Presidential election.
"Although economists and strategists will likely continue to debate whether the economic glass is half-full or half-empty for a few quarters, there is good data and anecdotal evidence that the economy continues to recover. CEO conservatism could lead to continued slow but steady hiring and capital spending decisions in the coming quarters. I wouldn't be surprised if nine months from now the historical perspective on this recovery isn't far more positive than the day-to-day reviews we are seeing currently," says participating advisor Daniel Roe of Budros Ruhlin Roe in Columbus, Ohio.
AdvisorBenchmarking says a more positive outlook is pervasive throughout all four components of the ACI, which include advisors' current, six-month and 12-month views of the economy, as well as their stock market outlook.
The ACI is modeled after the Consumer Confidence Index and captures the sentiments of 150 independent registered investment advisors (RIAs). The participating advisors answer four multiple-choice questions every month reflecting their views of the economy.