Financial Advisers Somewhat Optimistic about Economy

Financial advisers are split over whether the recession has ended, according to the latest Brinker Barometer.

Slightly more than half (52%) of advisers surveyed by Brinker Capital said they agree with recent reports that the U.S. has emerged from the recession. However, more than half (62%) also said it’s “somewhat likely” the U.S. will encounter a double-dip recession (and 17% said it is “highly likely”).

Whether the recession has actually ended, most surveyed advisers are at least somewhat optimistic about the economy. The majority (63%) believe the U.S. economy at the end of 2010 will show significant improvement over that seen to-date. Half of the advisers are somewhat (43%) or highly (7%) confident in the outlook of the U.S. economy.

When it comes to the performance of the stock market, advisers are even more confident. More than half are somewhat (54%) or highly (5%) confident in the performance of the market. The overwhelming majority (79%) of advisers believe the Dow Jones Industrial Average will end the year above 10,000.

Most (83%) of the advisers agreed that emerging markets present greater growth possibilities than developed markets in the near-term.

While the advisers are somewhat confident on the outlook of the stock market and economy, they are most confident in the outlook of their own practice. Almost three-fourths said they are somewhat (33%) or highly (40%) confident in the outlook of their practice.

Despite the depreciation in their clients’ portfolios, advisers are sticking with their strategies. The overwhelming majority (87%) said they are staying with their asset allocation strategies, while 17% said they are trying to time the market to rebuild client assets, according to the survey.

The Brinker Barometer was conducted online by Brinker Capital in October. The results are based from responses from 247 advisers affiliated with insurance companies, independent broker/dealers, and in sole practice.