Rockville, MD, Aug. 1, 2012 (GLOBE NEWSWIRE) -- July 31, 2012 -- The Advisor Confidence Index (ACI), a benchmark that gauges advisor views on the U.S. economy and stock market, reports that advisor confidence fell in July, with the index slipping almost 6% from the June level to close at 98.75.
Several survey participants cited the current vulnerability of the U.S. economy, and noted that markets are being supported primarily by the potential for policy action from the world's leading central banks. Others believed that markets would remain bumpy through the November U.S. presidential election.
Jim Elder of ElderAdo Financial expressed concern that "the media and politicians keep ignoring the massive debt which our government has accumulated and will eventually strangle our economy."
Markets will continue to trade in a tight range as long as corporate earnings don't retreat, according to George Cheatham of American Financial Consultants Inc. "As history has always shown," he said, "minus any clear direction of economic news short-term, emotions and sentiment rule the day."
Rob Siegmann of Financial Management Group cautioned that it is not wise for investors to worry about what might happen. "Especially when it comes to investing," he said, "it's best to separate short-term and long-term savings/investments and track the market accordingly while minimizing major risks."
Three of the four components of the ACI experienced a decrease over the prior month. The "Stock Market Outlook" measure rose slightly.
| Current economic outlook | -2.06% |
| Six-month economic outlook | -10.83% |
| 12-month economic outlook | -11.31% |
| Stock market outlook | +2.17% |
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 Advisorbenchmarking, Inc. or any of its affiliates.
About Rydex AdvisorBenchmarking, an affiliate of Guggenheim Investments
Rydex 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 Guggenheim Investments.