Adviser Confidence In Banks, Economy Falls
July 7, 2008
Adviser confidence in the economy and stock market declined in June, according to Rydex AdvisorBenchmarking. The Rydex Advisor Confidence Index fell 3.07%, to 96.93, from a month earlier, due to heightened concerns about rising energy costs, higher inflation and the subprime mortgage crisis.
David Cramer of Cramer Financial Services said, "The leadership of the banking industry [has] zero credibility."
Advisers were upbeat about the current economy but were more pessimistic about the 12-month economic outlook and the 12-month stock market outlook than they were in May.
Meanwhile, the Conference Board Consumer Confidence Index, which has declined since last summer, posted a further decrease in May. The Consumer Confidence Index stood at 50.4, down 19.10%, compared with a 10.65% increase for the adviser index since April.
In addition, a key measurement of the sentiment of affluent investors fell to its second-lowest level in June. A second index, tracking millionaires, also fell, with millionaires concerned with the political climate.
The Spectrem Affluent Investor Index of households with $500,000 or more in investable assets, fell four points on June to -17, its second-lowest level since its launch in February 2004. Also falling in June was the Spectrem Millionaire Investor Index, down to -12 from -9 in May. Millionaires had expressed some hope in May, which triggered a rise in the index, but that has proved to be short lived. The millionaire index reached its all-time low in April with -14, and sentiment expressed in June runs nearer to that figure than May's.
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