Advisors Cut Economy Outlook 12% to 106 as 43% See U.S. Declining in 1 Year
Updated
Updated · Wealth Management · Jul 20
Advisors Cut Economy Outlook 12% to 106 as 43% See U.S. Declining in 1 Year
3 articles · Updated · Wealth Management · Jul 20
Summary
June survey data showed advisors' economy sentiment falling 12% to 106 and stock-market sentiment dropping nearly 8% to 121, retreating from May's near-record optimism but staying above the neutral 100 mark.
43% of advisors now expect the U.S. economy to worsen over the next year, versus 46% who still see improvement, the bleakest long-term economic reading since the index began two years ago.
Inflation worries and on-again, off-again international diplomacy drove the pullback, even as 44% still rate current economic conditions positively and 27% negatively.
Stock-market views remained stronger than economic views: 66% called current conditions positive, while 50% expect the market to improve in a year and 34% expect a decline.
Respondents described a K-shaped economy in which rising asset prices support investors and higher-income households while inflation, housing and daily costs strain consumers and small businesses.