Advisor confidence bounced back in June, according to Rydex AdvisorBenchmarking, Inc., an affiliate of Rydex Investments. The Advisor Confidence Index (ACI) is a benchmark that gauges advisors' views on the U.S. economy and stock market. Since its inception three years ago, the ACI has been a useful tool for advisors to assess how their market outlooks align with their peers.
   Comparing the ACI to stock market movements reveals that advisors correctly predict future market movement trends about 80% of the time. The six-month outlook shares the same pattern as the S&P 500 Index, revealing that advisors' financial outlooks were correct most of the time when looking ahead at how the stock market might perform over the next six-month interval.
   Overall, the ACI has dropped 8% to 113.42 since the index was first created in April 2004. During the last three years, advisors have consistently been pessimistic about the six-month outlook for the economy. In fact, the six-month economic outlook sentiment has dropped 12% since April 2004.  
   But the ACI increased 1.68% in June to 113.42, up from 111.55 in May, as advisors have a positive assessment of future trends in the economy. "Strong corporate earnings, good productivity and reasonable valuations will propel the market higher," commented one survey participant. Also, advisors think the U.S. economy continues to grow based on continued cost cutting and labor savings due to such factors as offshoring, outsourcing and advancements in technology.
   Three out of the four elements used to calculate the ACI increased in June. Advisors were most positive about the six-month economic outlook, which was up 5.9%. The 12-month economic outlook improved 3% and the current take on the economy rose 1.3%. The lone downer was the stock market outlook, which fell 3.5%.