The stock market is never a perfect reflection of the underlying economy.
Yet financial advisors are noting a growing divide, per the latest WMIQ Advisor Sentiment Survey. This monthly poll gauges financial advisor views on the near-term direction of both the investment markets and the economy.
In January, overall market (122) and economic (108) sentiment fell by some 5%, though both remain in positive territory. (In the Advisor Sentiment Index, 100 is neutral. Scores above 100 indicate positive sentiment, while scores under 100 reflect the opposite.)
Indeed, nearly 75% of advisors have a favorable view of the current state of the stock market, which returned almost 18% in 2025 with dividends reinvested, as measured by the S&P 500.
Yet fewer advisors expect that trajectory to last. Only 42% said they thought investment markets would be higher one year from now. Almost as many (38%) expect a decline. That level of negative sentiment on the markets is the most bearish it has been in two years.
While opinions vary, there is a strong sense that current valuation levels are not sustainable. Many expect a correction, or at least a period of range-bound performance, in future months, noting that fundamentals and valuations may eventually reassert themselves after years of momentum-driven gains.
As for the economy, advisors are similarly turning bearish. Half (49%) of advisors consider the current economy to be healthy. Only 17% have a negative view.
That negative outlook, however, jumps to 37% when asked to predict the economy’s health in 12 months. While not a majority, the negative economic sentiment has only been that high a handful of times over the past two years.
Financial advisors’ commentary accompanying the survey showed many saw a growing disparity between equity market performance and the economic realities faced by consumers. Persistent challenges such as escalating living costs, healthcare affordability, stagnant wages and an expanding wealth gap are considered structural headwinds for the broader economy.
The disconnect raised concerns for some advisors that the bullish sentiment in financial markets may not accurately reflect the underlying fundamentals of long-term economic stability.
Methodology, data collection and analysis by Wealth Management and Informa Engage. Data collected January 15-26, 2026. Methodology conforms to accepted marketing research methods, practices and procedures. Beginning in January 2024, Wealth Management began promoting a brief monthly survey to active users. Data will be collected each month going forward, with a goal of at least 100 financial advisor respondents per month. Respondents are asked for their view on the economy and the stock markets both currently, in six months and in one year. Responses are weighted and used to create an index tied to a neutral value of 100. Over time, the ASI will provide directional sentiment of retail-facing financial advisors.
