It may have been an early case of the summertime blues, but a new survey suggests RIAs headed into this summer are less optimistic about the U.S. economy and stock market.
Though still hopeful about the world economy, RIAs are less optimistic about the U.S. economy and stock market than they were at the beginning of the year, according to the Midyear RIA Sentiment Survey from Jersey City, N.J.-based TD Ameritrade Institutional,
Sixty percent of the survey’s 300 RIA respondents, who were surveyed in late June, were optimistic about the U.S. economy, down from 68 percent in January. When asked about the global economy, however, 64 percent of the RIAs were optimistic, up from 55 percent.
Fifty-six percent of the RIAs doubted that the stock market’s positive momentum will continue through year’s end.
Advisors were also pessimistic about the Department of Labor’s fiduciary rule. Only 23 percent of the respondents felt like the rule would have a positive impact on their business, compared with 62 percent who believed it would have no impact at all.
The policy proposals most impactful to RIAs, according to the respondents, are tax reform, followed by the DOL rule, then the reform of Dodd-Frank banking regulations.
TD Ameritrade also asked RIAs about their summer activities, finding that most advisors stay connected to their work—and their clients—throughout the vacation season. Three-quarters of the respondents reported increasing the frequency or keeping the same schedule of client meetings throughout the summer.
About half of the respondents reported taking one to two weeks of vacation during the summer, and 40 percent reported taking no vacation, long weekends or just one to four days. Most RIAs, 67 percent, also reported checking in with their work at least once a day while away from the office.
Only one in three respondents hired interns during the summer, according to the survey, and only a small fraction of advisors have a formal internship program.
The advisors surveyed had an average AUM of $166 million.