ASI: Advisor Optimism Surged in December
Advisors’ confidence in both the economy and the stock market notably improved at the end of the year.
Advisors’ view of the health of the stock market in December rose 14% to an index reading of 129, nearly matching the two-year high of 130 reached in November 2024. (An index reading of 100 reflects an entirely neutral view.)
A decisive majority of respondents (80%) consider the current state of the stock market to be positive. Just 3% expressed a negative view. The view comes just as the S&P 500 rallied, rising almost 5% over the weeks following an equally precipitous drop in November.
At the same time, most advisors recognize that the market is overheated. A dominant concern is that equity valuations are stretched, with frequent references to the S&P 500, “top-heavy” indexes, and parallels to the dot-com bubble—particularly around artificial intelligence and the “Mag 7.”
Advisors worry that markets are being held up by narrow leadership and hype-driven capital flows, which could unwind sharply. Many expect a correction at some point in 2026, even if the year ultimately finishes strong. The majority (60%) believe stock prices will remain unchanged or decline over the next six months.
Confidence around the economy also rose. From a previous reading of 101, just slightly positive, the index rose 12% to reach 113.
While the index pushed further into positive territory, just under half of advisors consider the current economy to be healthy. Another 37% consider it “average.” Only 16% hold a negative view.
Respondents were divided about the state of the economy six months from now: 37% expected an improvement, 28% expected a decline and 35% expected no meaningful change. Looking forward, respondents were more optimistic, with 49% expecting an improvement.
In comments, several advisors highlighted concerns, including widening wealth inequality, consumer stress, government debt and the risk that employment weakness could quickly derail both earnings and sentiment.
Some believe official data overstates economic strength or masks underlying fragility. This creates a sense that while headline indicators look healthy, the foundation is uneven and potentially brittle.
The RIA Edge Advisor Sentiment Index is the weighted results of a monthly poll of over 100 registered investment advisors that gauges their view, positive or negative, on the current and future states of the stock market and the economy.
Methodology, data collection and analysis by WealthManagement.com and Informa Engage. Data collected November 5-30, 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.