Advisor Sentiment Index: Advisors See a Cloudier Economic Future
After spiking to a near-record high in May, financial advisors’ confidence in the overall economy and the equity markets fell last month, as advisors reported their most pessimistic view to date of the economy’s long-term prospects.
Overall, advisors’ feelings about the health of the economy fell 12% to an index reading of 106, while their sentiment about the stock market’s prospects dropped almost 8% to a reading of 121, according to the Wealth Management IQ Advisor Sentiment Index, a monthly survey of financial advisors.
A reading of 100 indicates a completely neutral view. Index levels above 100 signal a positive view, while levels below 100 indicate negative sentiment.
While 44% of respondents view the current state of the economy as positive, only 5% consider it “excellent.” About one in four (27%) hold a negative view.
The on-again, off-again nature of international diplomacy and concerns about inflation are prompting many advisors to reconsider their views on the country’s financial health.
But even as sentiment remains in positive territory, 43% of advisors expect the economy to have declined by this time next year. An almost equal number (46%) expect an improvement. Still, that is the highest expectation of an economic decline since the ASI began surveying advisors two years ago.
Advisors continue to view the prospects for the stock market more favorably than the overall economy. A decisive majority of respondents (66%) consider the current state of the stock market to be positive, with just 10% expressing a negative view.
Looking ahead one year, 50% expect an improvement and 34% expect a decline in the stock market.
A recurring theme among survey respondents is the perceived divergence between a resilient stock market and the financial realities facing many consumers and small businesses. Advisors describe a “K-shaped” economy in which investors and higher-income households continue to benefit from rising asset prices while inflation, housing costs and everyday expenses leave many Americans struggling, leading some to question whether headline market gains accurately reflect overall economic health.
Methodology, data collection and analysis by Wealth Management and Informa Engage. Data collected June 1-30, 2026. The methodology conforms to accepted marketing research methods, practices, and procedures. Respondents are asked for their view on the economy and the stock markets both currently, in six months and in one year. Responses are weighted and used to create an index tied to a neutral value of 100. Over time, the ASI will provide directional sentiment of retail-facing financial advisors.
