Financial advisors’ confidence in both the economy overall and the stock market fell last month.
September marks the second consecutive month that the Advisor Sentiment Index on the markets and the economy has declined, although both remain in positive territory.Â
The WMIQ Advisor Sentiment Index is a monthly reading of registered investment advisors’ confidence in the health of the stock market and the economy, both currently and in the near-term future.Â
Advisors’ view on the stock market fell six points to a level of 120, while their opinion over the relative health of the economy fell twelve points, to 106. That is the steepest one-month drop in economic sentiment among financial advisors in two years.
Yet both scores remain higher than they were in the first quarter of the year, when fear over Trump’s tariff policy announcements gripped markets.Â
Only 35% of financial advisors consider the current state of the economy to be positive, down from over 50% of advisors one month earlier. Almost half of financial advisors consider the economy’s health to be just average.Â
Some advisors point to political instability, ineffective governance and tariff policies as risks to economic and market health. In the survey, respondents highlight concerns about autocratic actions, geopolitical tensions and the long-term repercussions of current trade policies on corporate earnings and consumer costs.
Respondents are almost evenly divided on the state of the economy six months from now: 36% expect an improvement, 32% expect no change and 32% expect a decline. Looking forward 12 months, respondents are more optimistic, with 50% expecting an improvement.
Advisors are much more bullish on the state of the stock market, even as a handful describe it as overvalued, with AI and mega-cap stocks potentially in a bubble. The majority, about two-thirds of respondents (65%), think the markets are strong. Respondents are equally optimistic about the future. Six months from now, 43% of advisors expect improvement, while more than half expect the same one year from now.Â
Methodology, data collection and analysis by WealthManagement.com and Informa Engage. Data collected September 8-30, 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.
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