NEW YORK, Dec. 24, 2012 (GLOBE NEWSWIRE) -- The Advisor Confidence Index (ACI), a benchmark that gauges advisor views on the U.S. economy and stock market, reports that advisor confidence increased significantly in December, with the index decreasing 18.41% from the November level to close at 100.8.
Survey participants shared their views on the current market environment, with the fiscal cliff and market outlook proving to be top of mind for many advisors. "Seasonal forces should carry the market higher into April and May of next year," said Kenny Landgraf of Kenjol Capital Management LLC. He believes we are nearing the end of the selling wave due to three reasons: 1) the annual tax loss in the Fall, 2) the outcome of the November election, and 3) taking capital gains in 2012 at 15% versus the unknown of 2013 and future years.
He added, "In addition to that, some deal coming out regarding the Fiscal cliff and the market will move higher for the short term into the spring." Landgraf also said that looking further out, the summer months have not been kind to markets during the first year of the four year presidential cycle. "The Fed continues to think of innovative ways to attempt to take interest rates lower and expand its balance sheet, and we are in uncharted territory on this QE (quantitative easing) experiment."
All four components of the ACI experienced an increase over the prior month, with the stock market outlook experiencing the biggest percentage change:
| Current economic outlook | 10.53% |
| Six-month economic outlook | 16.31% |
| 12-month economic outlook | 8.96% |
| Stock market outlook | 39.18% |
Charts accompanying this press release are available at https://media.globenewswire.com/cache/16530/file/17371.pdf
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 AdvisorBenchmarking, Inc. or any of its affiliates.
About Rydex AdvisorBenchmarking, an affiliate of Guggenheim Investments
Rydex 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 Guggenheim Investments.
