U.S. advisors more optimistic

Financial advisors have become increasingly optimistic about the future of equities markets, following a strong start to the year, according to a survey in the U.S. by investment firm SEI.

A stunning 90% of advisors said they expect positive returns on the S&P 500 for this year, up 18% from the same survey in early January.

The biggest increase (50%) was among those who predict a gain of more than 5%.

“Investors and advisors, alike, have been waiting for an excuse to become more positive,” said Steve Onofrio, managing director, SEI Advisor Network. He pointed out that better employment data, higher profits and even the absence of horrible news have all contributed to advisor optimism.

“While we aren’t out of the woods yet, it’s important for advisors, and investors, to recognize we are in the early stages of a changeover and position their portfolios accordingly,” he said. “With that said, there are still global risks including Greece, Syria, Iran, and Europe, that could tilt sentiment negative again.”

So optimistic are advisors, that more than a quarter of them expect the next bubble to burst will be the “pessimism bubble” that plagues the U.S. economy.

The February survey was completed by more than 100 advisors, the majority of whom manage more than $50 million in assets.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.