ROCKVILLE, Md., Dec. 27, 2011 (GLOBE NEWSWIRE) -- The Advisor Confidence Index (ACI), a benchmark that gauges advisor views on the U.S. economy and stock market, reports that advisor confidence decreased slightly in December with the index closing the month at 99.31. In November, the index closed at 100.33.
The slight decrease from last month may stem from worries over the European economy. "Even if policy decisions were excellent in the U.S. in 2012—and they will be far from that—[the U.S.] will not be immune to problems in Europe," said Richard Coe, CFP and financial advisor with Coe Financial Services. "Those problems are so complex that they could easily go from bad to much worse," he said.
Ken Graves, financial advisor with Capital Research, says, "The Europe theme overwhelms markets and the desire for a solution is massive. Solutions don't tend to come in an event, but rather through a process."
Charts accompanying this release are available at https://media.globenewswire.com/cache/17674/file/12182.pdf
Among the economic components of the ACI, advisors' 12-month outlook increased 1.46 % to 104.17 from 102.67. The stock market component of the ACI fell 5.18% to 98.61.
| Current economic outlook | -2.97% |
| Six-month economic outlook | +2.74% |
| 12-month economic outlook | +1.46% |
| Stock market outlook | -5.18% |
Continuing on the Europe theme, Rob Siegmann, financial advisor with Financial Management Group, said, "We see no near-term end in sight for the equity markets continued volatility because the EU solution will take time and the US political ineptness will not change until November's election is known. Expect a bumpy ride for 2012."
Advisors were asked additional questions this month about the 2012 outlook. When asked what their main concern was for the year ahead, 50% of respondents stated market conditions, followed by 13% stating retaining clients was a main concern. As stock market performance for 2012 is difficult to predict, 37% of advisors surveyed don't yet have an opinion on what 2012 will bring, while 25% of respondents believe the stock market will perform worse than in 2011.
Further Comments From Participating Advisors
"It's time to wake-up and pay attention to what's going on around us."
William McCollum, Eagle Financial Management Services
"…We are now directly correlated with the events of Europe while Europe tips towards recession and the U.S. slowly climbs out with slow modest growth amid signs of economic improvement. Someday the hostage will be released which should provide upside to U.S. and international markets."
Kenny Landgraf, Kenjol Capital Management
About Advisor Confidence Index's Methodology
The Advisor Confidence Index is a benchmark that gauges advisors' views on the economy. Modeled after the Conference Board Consumer Confidence Index®, the ACI captures the sentiments of 150 independent registered investment advisors (RIAs). The index's analysis is based on the number of completed surveys and reflects only information from those surveys. This information is intended to be general in nature, and these overviews are no substitute for professional, legal, or consulting advice. This information should not be construed as advice from Rydex|SGI Advisorbenchmarking, Inc. or any of its affiliates.
About Rydex|SGI AdvisorBenchmarking, an affiliate of Rydex|SGI
Rydex|SGI AdvisorBenchmarking is a research and analysis center focused on the registered investment advisor (RIA) marketplace. Every year through its survey website, www.AdvisorBenchmarking.com, the firm conducts multiple surveys of advisors, covering a host of business management and investment management practices. The findings and analysis of the data are then released to the marketplace as annual studies, quarterly research notes, monthly newsletters, and a confidence index. The service is aimed at helping advisors grow and enhance their firms by comparing how their businesses fare against other advisors. Advisors also learn best practices of the most successful advisors in the business. AdvisorBenchmarking is an affiliate of Rydex|SGI.