Optimism among financial advisors in January was the highest it has been in months, largely based on their expectations for the U.S. economy.
The WealthManagement.com Advisor Confidence Index rose to 121.53 in January, up 2 percent from December and 4 percent above September, when the index tracked the weakest advisor sentiment for all of last year.
The index taps 150 advisors' monthly perspectives on the economy and markets. While their overall expectations for the stock market remain flat, their confidence in the state of the economy rose 3.2 percent.
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Many advisors noted falling oil prices in their survey responses, viewed as mostly a positive for American consumers and the larger economy.
"There is no sign in sight of curtailing oil supply to prop up prices," said Eve Kaplan of Kaplan Financial Advisors, a fee-only advisory in Berkeley Heights, New Jersey.
"It would be good if Americans can use some their gas stand savings to boost insufficient retirement savings," she added.
Others advisors weighed in on the stock market, and what they see as a U.S. equity bull market with increasingly tired legs.
"Far too many analysts and advisors are bullish toward the U.S. stock market, so I am expecting a decline of about 10% for the S&P 500 and perhaps more," said Steven Jon Kaplan of True Contrarian Investments, a New York City-based RIA.
"U.S. domestic equities and bonds can be expected to return below average returns," speculated Arthur Doglione, president of Alpha Fiduciary, a Phoenix-based RIA consultancy.
"Alternative asset classes such as emerging markets debt and equity, as well as managed futures, look to offer higher real returns than domestic debt or equity," he added.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
