Advisors, like consumers, are getting more worried about the economic picture.
The Rydex
AdvisorConfidence Index (ACI) fell 9% in March, which is the largest
one-month slide in the index's three-year history, according to Rydex.
The index, which measures advisors'
views on the economy and the stock market, fell from 123.88 to 112.50
in March, with advisors expressing the most worry about the short-term
economic outlook.
The growing
pessimism of advisors comes at a time when consumers are also
expressing worry about the economic picture. The New York-based
Conference Board said its Consumer Confidence Index fell to 107.2 in
March, down from the revised 111.2 in February. The March index was the
lowest since November 2006, when the reading was 105.3.
Advisors who
contributed to the ACI gave Rydex a number of reasons for their dim
economic outlook, including rising gas prices and the danger of the
economy entering a recession this year.
"Our investment
policy team is concerned with the market outlook, despite an
overwhelmingly positive outlook by the media and other advisory firms,"
said Rob Siegmann of the Financial Management Group. "We hope we're
wrong, but our philosophy guides us to protect portfolios by
outweighing bonds by 10% to 15% for the year."
Advisors Losing Confidence In Economy
March 30, 2007
« Previous Article
| Next Article »
Login in order to post a comment