Advisor confidence sinks to lowest level in 18 monthsPosted by: RJ and Makay on Sep 01, 2010  
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Advisor confidence
in the economy and stock market in August sunk to its lowest level in 18 months, according to The Advisor Confidence Index from Rydex/SGI. The ACI results share the same pessimistic outlook as Schwab’s recent semiannual survey, which found half of advisors saying their clients are less optimistic about the market and the economy than they were a year ago. The index declined roughly 9% to 93.80 from a month earlier. The lowest point for the ACI was October 2008 when it dropped to 79.07.
Advisors surveyed by Rydex/SGI appear to be most concerned about the lack of meaningful job growth in the country. Among the advisors Rydex/SGI surveyed they also asked about the changes they made to their asset allocations in August, the results were:
- About a third (32%) of advisors increased allocations to emerging market equities and cash
- Almost one fourth (23%) increased allocation to the non-U.S. (developed market) equities
- 30% decreased allocation to U.S. large-cap growth
- 16% increased allocation to high yield bonds
On the positive side, corporate earnings and revenue continue to grow steadily. “…We expect the Fed to get increasingly aggressive as employment figures deteriorate in the coming weeks/months, which could result in further currency and commodity volatility,” James Dailey, a portfolio manager for TEAM Financial Managers in Harrisburg PA said in the survey response.
http://www.financial-planning.com/news/advisor-confidence-rydex-2668530-1.html
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