Financial Advisor Confidence Outlook
The Financial Advisor Confidence Outlook (FACO) is a monthly index published on Financial Planning that surveys hundreds of financial advisors to understand their forward-looking perspective on the economy and plans for client asset allocations. This index provides a snapshot of the economic landscape and provides a peer view into client advising choices for the coming month.
In this index, advisors are asked to share their outlook on six core economic indicators: the overall economy, the global economic system, government policy, their asset allocation, their client's risk tolerance, and their practice performance. From these responses, a score is developed to take into account the balance of positive and negative outlooks. These scores are then averaged to create the overall outlook score: a value from -100 to 100 with -100 being the most pessimistic outlook possible, 0 being a neutral outlook, and 100 being the most optimistic outlook possible.
The FACO (June, 2023 – present) is a reimagined version of the Retirement Advisor Confidence Index (June, 2011 – May, 2023).
Data from the February Financial Advisor Confidence Outlook found that President Donald Trump's policies are making advisors rethink portfolio allocations.
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Advisors reported that the speed with which President Trump seeks to remake Washington in the first few weeks of his second term also had clients on edge.
February 18
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Lack of freedom and limited investment choices may be driving advisors at broker-dealers to leave their firms this year.
January 23
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The most precipitous drop of any category was in asset allocation, as advisors signaled they would be less aggressive with investments in the new year.
January 9
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"This will be the best economy of our lifetime," said one financial advisor in an unusually upbeat Arizent survey.
December 4
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At the start of November, wealth managers and their clients stood watching and waiting as America decided its next president.
November 5
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Despite the increase in overall confidence, election anxiety has remained a potent force for financial advisors and clients.
October 31
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The prospect of lower interest rates from the Federal Reserve helped buoy outlooks.
September 25
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However, financial advisors have been trying to ease client fears by taking a longer view.
August 21
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Retirement advisors' confidence in the economy broke even in July, but a closer look shows rising anxiety.
July 8
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