This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Penton's Financial Advisor Confidence Index Begins To Moderate

NEW YORK, April 2, 2013 /PRNewswire/ -- Penton's Advisor Confidence Index (ACI), a benchmark of financial advisors' views on the U.S. economy and the stock market, grew 6.31 percent in March. It is the slowest rate of growth since the end of last year as lowered optimism over the future of the U.S. economy and the stock market has dampened advisors' overall outlook.

(Photo: )'s Advisor Confidence Index (ACI) is a monthly benchmark with an eight-year history that gauges registered investment advisor (RIA) views on the U.S. economy and the stock market. ACI data is compiled from a survey 300+ panel members that work at leading RIA firms who are prequalified for their industry experience and assets under management. The survey asks advisors for their views on the outlook for the economy now, in six months, in twelve months, and on the stock market.

After a steady increase in confidence since the end of last year, advisors' belief in the continued future improvement of the market and the economy has started to moderate. To be sure, March marks the fourth month in a row that the overall index has climbed higher, supported by increases in all four of the underlying components. 

Yet looking closer, growth in the component of the index that gauges confidence in the economy in twelve months grew at a slower rate of only 4%; likewise, fewer advisors registered a positive outlook for equity markets over the next six months. That index has grown at a rate of 2.3%, its slowest rate in five months.

"Though the economy appears to be strengthening in the short-run, it may be illusory over the longer-term. Europe is still a major problem, sequestration will slow the economy, Government spending is out of control and unconscionable, and interest rates may be heading much higher, creating even worse implications for the deficit problem," says ACI panelist Kevin Stockton, an advisor with Horter Investment Management.

Many advisory panelists were concerned that the stock market has gotten away from itself, in part the result of the continued low interest rate environment.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs