Advisor Sentiment Slips; Decline Expectations Hit Record High

Advisors remain more upbeat on equities. A decisive 66% consider the current stock market positive; 10% see it negatively. For the next year, 50% expect improvement, 34% a decline.

A recurring theme in the written responses is a perceived divergence between a resilient stock market and the financial reality facing many consumers and small businesses. Advisors described a “K-shaped” economy where higher-income households continue to benefit from rising asset prices, while inflation and housing costs leave many Americans struggling. Some questioned whether headline market gains accurately reflect overall economic health.

The on-again, off-again nature of international diplomacy and persistent inflation are prompting advisors to reconsider their views, according to the survey. The data was collected June 1-30 by Wealth Management and Informa Engage.

While sentiment indexes remain above neutral, the shift suggests advisors are growing more cautious even as they stay generally positive on stocks. The next survey, covering July, will show whether the trend continues as second-quarter earnings season unfolds and the Federal Reserve’s next rate decision approaches.