A recent survey of American investment advisors finds few expecting an economic boom any time soon. Instead, most remain cautiously optimistic, assume only steady economic growth through the rest of 2014.
The survey was conducted by SEI Investments at the recent National Strategic Advisor Conference. The results confirm what many suspect: the economy is okay, but not really taking off. Nearly four out of five advisors polled said they see slow and steady growth for the U.S. economy. An overwhelming ninety-three percent anticipate a modest level of growth.
Nevertheless, SEI painted the results in a positive light. A study conducted a year ago found 41 percent of advisors anticipated slow and steady growth; 40 percent thought the economy was headed for a short-term correction. The latest results suggest a positive shift in sentiment.
"It seems like the psychological after-effects of the recession are finally starting to wear off and advisors are becoming more optimistic about the market," an EIA vice president said. “They may not be ready to predict huge returns but even anticipating slow growth is an improvement over where most advisors were a year ago. It will be critical for advisors to now start communicating that optimism to their clients."
More than half said they were most worried about geo-political issues. Twenty percent said they were most worried about federal debt. Social security, the state of the Chinese economy and unemployment were also cited as causes of concern.
The survey also contained a section on social media. An overwhelming number of advisors polled—82 percent—said LinkedIn has been the most effective channel for building a business online. Twelve percent said a blog helped, only five percent mentioned Facebook and Twitter. Advisors remain conservative in their use of social media. Fifty six said that legal restrictions and regulations are a challenge to using social media.