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The Markets December 29, 2008
Advisers Slightly More Optimistic in December
Advisers' outlook on the economy and the stock market improved slightly in December, according to Rydex AdvisorBenchmarking.
Reported by Alison Cooke
The Advisor Confidence Index (ACI), which gauges adviser views on the U.S. economy and stock market, increased 2% between November and December, from 82.46 to 83.57.
The calculation of the ACI considers four economic elements, two of which rose in December. The component with the most significant increase was the stock market outlook (+4.73%).
The four index components are:
- Current economic outlook (+3.78%)
- Six-month economic outlook (+0.82%)
- 12-month economic outlook (-3.17%)
- Stock market outlook (+4.73%)
Despite the positive outlook on the stock market and current economic outlook, advisers surveyed are least confident about the longer-term economic outlook. The 12-month economic look is relatively pessimistic, showing a -3.17% change. Advisers are also less optimistic about the likelihood of economic growth improving in the first half of 2009.