Last month WealthManagement.com The Advisor Sentiment Index for July shows a slight increase in financial advisors' confidence in the overall economy and the stock market.

The Economic Confidence Index rose to 108 in July, from 106 in June, while the Stock Market Confidence Index rose.

Despite this uptick in sentiment, advisers remain cautious. Only 41% of respondents see the current state of the economy positively, where 40% remain neutral and 19% have a negative perspective.

Looking ahead, expectations for economic improvement are mixed; while 31% predict an improvement in the next six months, 34% expect conditions to worsen. However, optimism increases over a 12-month horizon, with 53% predicting economic growth.

Sentiment toward the stock market is more favorable, with 69% of advisors currently rating it positively. However, expectations for the market's trajectory over the next six months are divided, with 33% expecting improvement, while 37% predict a decline. Confidence rises over the coming year, with 47% anticipating a stronger market.

These findings highlight continued uncertainty and mixed sentiment among financial advisors, reflecting broader concerns about the economic outlook and market stability.

Methodology, data collection and analysis by WealthManagement.com and Informa Engage. The methodology conforms to accepted marketing research methods, practices and procedures. Beginning in January 2024, WealthManagement.com began promoting a short monthly survey to active users. Data will be collected within the last ten days of each following month, with a target of at least 100 financial advisor respondents per month. Respondents were asked about their views on the economy and the stock market as of now, six months from now and one year from now. The responses are weighted and used to create an index tied to a neutral value of 100. Over time, the ASI will provide a sense of the direction of retail financial advisors.