narayan
Financial advisors’ confidence in both the equity markets and the U.S. economy fell in November, and a growing number say the future isn’t looking so bright either.
Current sentiment around U.S. economy fell five points, or almost 5%, from the previous month to an index reading of 101 (a reading of 100 would reflect a completely neutral view).
While still in positive territory, it’s close to an annual low, matching the dip in advisor sentiment during the “tariff tantrums” in the first quarter of the year. The index is 16% lower than it was one year ago.
Likewise, advisor sentiment in the stock market fell nine index points, or 7%, to an index reading of 113. While that remains in positive territory, the index has been dropping monthly since the summer and is 12% lower than the 12-month high reached in July.
The WMIQ Advisor Sentiment Index is a monthly survey of client-facing registered investment advisors and wealth managers that measures their overall feeling about the health of the economy and the stock market. The survey seeks to gauge advisor confidence in the health of the stock market and the economy, both currently and in the near-term future.
Prospects for the U.S. economy in the year ahead continued to turn negative among advisors, as the share who predict a decline in the overall health of the economy over the next year rose for the fifth consecutive month.
Some 42% of advisors see a less healthy economy by the end of next year. That’s the highest percentage of advisors to express such a view all year. In June, only 21% of advisors took that view.
To be sure, slightly more, 44%, of advisors expect the economy to improve by this time next year (15% expect no change). Even so, the number of optimists has fallen consistently since reaching a high of 63% in April and is now at its lowest level over the past 12 months.
Likewise, optimism in the future of the markets is on the decline.
Many advisors believe the stock market, particularly large cap tech, is significantly overvalued. Respondents frequently cited bubbles, stretched valuations and excessive concentration as risks that could trigger a correction. While some expect normal volatility, others fear a sharper downturn.
While half of financial advisors (49%) expect markets to be higher in a year, that’s the lowest number who have held that view over the previous 12 months. In April, a complete 76% of advisors were equally positive.
Almost one in three (35%) of advisors anticipate a decline in the state of the market 12 months from now. However, that number has risen for the fifth consecutive month; in April, only 18% of advisors shared the sentiment.
Inflation remains one of the most frequently mentioned concerns. Even where markets appear strong, many believe underlying economic conditions for everyday Americans remain fragile.
Several advisors who offered their opinions alongside the survey pointed to weakening job reports, a softening labor market and concerns that AI-driven layoffs will complicate the Fed’s decisions and pressure the broader economy. Some respondents fear that concentrated corporate gains mask underlying employment risk. Others raised concerns about sector-specific slowdowns (e.g., agriculture), which could add to future economic strain.
Methodology, data collection and analysis by WealthManagement.com and Informa Engage. Data collected November 5-23, 2025. Methodology conforms to accepted marketing research methods, practices and procedures. Beginning in January 2024, WealthManagement.com began promoting a brief monthly survey to active users. Data will be collected each month going forward, with a goal of at least 100 financial advisor respondents per month. 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.
admin
