Rydex|SGI releases Advisor Confidence Index for March
29-Mar-2011 | News-Press Release
Rockville, MD—March 29, 2011—The Advisor Confidence Index (ACI), a benchmark that gauges advisor views on the U.S. economy and stock market, reports that advisor confidence in the economy and the stock market fell again in March, declining 3.12% from the previous month.
The ACI Index fell 2.40% in February after gains in December and January had pushed the indicator to a near four-year high.
“All eyeballs have shifted to world events, including Japan and the Middle East,” said Kenny Landgraf of Kenjol Capital Management LLC. “Aggressive investors have gone back into their bunkers, especially with the big uncertainty surrounding Japan.”
Current economic outlook
Six-month economic outlook
12-month economic outlook
Stock market outlook
All four measures of the ACI headed down for the month. While advisors’ outlook for the stock market dropped the sharpest, the unsettled global backdrop seemed to weigh heaviest on their current economic outlook, which turned from a positive 2.06% in February to a minus 3.12% in March. The largest cumulative drop for the two month period, however, has been the 12-month outlook, which has fallen a combined 13.78% since January.
Comments From Participating Advisors
“The combination of dramatically rising fuel costs and the ongoing government protests in Africa and the Mid-East could prove to be the single quickest brake to the economic recovery, not just here but worldwide.”
George Cheatham, American Financial Consultants Inc.
“The tragedy in Japan would have normally had a modest impact on world GDP if the damage was contained to loss of life and property. However, the impact on global growth will be deeper and longer lasting if their nuclear systems suffer a catastrophic failure.”
Gregory Horn, Persimmon Capital Management
“An economic tsunami will roll through the global markets as various sectors attempt to calculate the Japan crisis on their business.”
Jim Elder, ElderAdo Financial
“While the stock market is sending positive signals, the economy continues to trail. Risk of inflation, oil shortages, and continued high unemployment will hold back the recovery for some time. A pull-back in the equity markets has to happen at some point.”
Peter Wheeler, Financial Advisor
“Our firm remains confident in the market for 2011, but expects to be cautious in 2012.”
Rob Siegmann, Financial Management Group
“While the stock market has had a terrific run the past two years, despite the risk of a near term correction the overall market looks positive for the next several quarters.”
Michael Sadoff, Sadoff Investment Management LLC
“Using this "stimulus", the Fed is close to dead. It has other weapons but it also has other challenges. Those challenges continue to grow.”
Ken Graves, Capital Research
Advisors Surveyed On Use of Social Media
In March, Rydex|SGI also surveyed advisors on their use of social media as part of their individual business practices. With two-thirds of the respondents looking to get clearer SEC/FINRA guidelines around the use of social media, only around a quarter of advisors were currently using Twitter, LinkedIn, or Facebook in their business. Most advisors—59%—have no plans to include social media as part of their practices in the next 12 months.
About Advisor Confidence Index’s Methodology
The Advisor Confidence Index is a benchmark that gauges advisors’ views on the economy. Modeled after the Conference Board Consumer Confidence Index®, the ACI captures the sentiments of 150 independent registered investment advisors (RIAs). The index’s analysis is based on the number of completed surveys and reflects only information from those surveys. This information is intended to be general in nature, and these overviews are no substitute for professional, legal, or consulting advice. This information should not be construed as advice from Rydex|SGI Advisorbenchmarking, Inc. or any of its affiliates.
About Rydex|SGI AdvisorBenchmarking, an affiliate of Rydex|SGI
Rydex|SGI AdvisorBenchmarking is a research and analysis center focused on the registered investment advisor (RIA) marketplace. Every year through its survey website, www.AdvisorBenchmarking.com, the firm conducts multiple surveys of advisors, covering a host of business management and investment management practices. The findings and analysis of the data are then released to the marketplace as annual studies, quarterly research notes, monthly newsletters, and a confidence index. The service is aimed at helping advisors grow and enhance their firms by comparing how their businesses fare against other advisors. Advisors also learn best practices of the most successful advisors in the business. AdvisorBenchmarking is an affiliate of Rydex|SGI.
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