Financial advisors can't seem to tell whether the glass is half-full or half-empty. According to a poll by MoneyShow.com, advisors believe the S&P 500 will rise and commodities and large-cap U.S. stocks will top the charts in 2008. At the same time, the majority is negative about the U.S. economy.
Overall, 62% of advisors believe the S&P 500 will finish in the black this year-42% expect the index to rise less than 10%, while 20% expect it to expand more than 10%. The favorite asset classes were commodities (32%) and large-cap U.S. stocks (26%).
Still, the overall bullishness is down from 71% last October, a time when the market was near its peak.
In addition, those surveyed expect higher inflation, lower short-term interest rates and a decline in the U.S. gross domestic product. Most telling, the poll shows that 63% of advisors are bearish about the U.S. economy, while 21% foresee a recession.
"After everything that's happened in the markets and with all the talk about recession, it's pretty striking that so many of these advisors remain bullish," said Howard R. Gold, executive editor of MoneyShow.com, an investing education website. "If they're correct, it would be very good news for all investors."