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US: Financial Advisors are Bullish on the Market
added: 2007-10-11

MoneyShow.com, announced the results of their latest Sentiment Indicator, which surveyed 284 financial advisors across the country. The results revealed financial advisors expect the Standard & Poor's 500 to rise, inflation to remain constant, lower short- term interest rates, GDP to decrease, and foreign stocks and large-cap US stocks to be the top performing asset classes until the end of 2007.

Financial advisors are bullish on US equities with 71% expecting from now until the end of the year the S&P 500 will rise. Of the advisors surveyed, 59% predict from now until the end of the year the S&P 500 will rise less than 10%, while another 12% of advisors are very bullish anticipating the index to rise more than 10%. While the Federal Reserve has decreased short-term interest rates recently, the majority of financial advisors, about 54%, expect inflation to remain constant for the rest of the year. Additionally, more than half of survey respondents, 54%, are also expecting the Federal Reserve to lower short-term interest rates during the remainder of 2007.

Financial advisors are bearish over predictions for US economic growth, with 51% of financial advisors surveyed expecting a decrease in the GDP for the rest of 2007. Financial advisors expect foreign stocks (36%) and large cap US stocks (24%) to remain the most profitable asset classes over the next three months.


Source: PR Newswire

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