Financial advisors’ confidence in both the equity markets and the U.S. economy fell in November, and a growing number say the future isn’t looking so bright either.

Current sentiment around U.S. economy fell five points, or almost 5% from the previous month. Likewise, advisor sentiment in the stock market fell nine index points, or 7%. The index has been dropping monthly since the summer and is 12% lower than the 12-month high reached in July.

Prospects for the U.S. economy in the year ahead continued to turn negative among advisors. Some 42% of advisors see a less healthy economy by the end of next year. That’s the highest percentage of advisors to express such a view all year. In June, only 21% of advisors took that view.

Likewise, optimism in the future of the markets is on the decline.

Many advisors believe the stock market, particularly large cap tech, is significantly overvalued. Respondents frequently cited bubbles, stretched valuations and excessive concentration as risks that could trigger a correction.

Almost one in three (35%) of advisors anticipate a decline in the state of the market 12 months from now. However, that number has risen for the fifth consecutive month; in April, only 18% of advisors shared the sentiment.

Inflation remains one of the most frequently mentioned concerns. Even where markets appear strong, many believe underlying economic conditions for everyday Americans remain fragile.

Several advisors who offered their opinions alongside the survey pointed to weakening job reports, a softening labor market and concerns that AI-driven layoffs will complicate the Fed’s decisions and pressure the broader economy. Some respondents fear that concentrated corporate gains mask underlying employment risk. Others raised concerns about sector-specific slowdowns (e.g., agriculture), which could add to future economic strain.

https://www.wealthmanagement.com/ria-edge/asi-advisors-views-on-markets-economy-dims