SOURCE: Rydex|SGI

Rydex|SGI

October 31, 2011 14:15 ET

Advisor Confidence Index Turns Positive in October

Sentiment Indicators up Across the Board as Advisors Cite 'Excess Pessimism'

ROCKVILLE, MD--(Marketwire - Oct 31, 2011) - The Advisor Confidence Index (ACI), a benchmark that gauges advisor views on the U.S. economy and stock market, shows that advisor confidence jumped 8.70% in October, according to Rydex AdvisorBenchmarking. The index closed the month at 99.64, up 7.97 points from September's close of 91.67.

All four components of the ACI were up for the period as advisors' anxieties around the U.S. and global economies were overshadowed by a recognition of the market's extreme bearishness. Says financial advisor Curt Weil, a partner with Weil Capital Management, "Excess pessimism, a gold bubble -- what's not to like?"

With October's pleasant gains -- only the third time the ACI has been up in 2011 -- the index is down nearly 18% from its January high.

Among the economic components of the ACI, advisors' 12-month outlook registered the largest gain -- plus 13.91% for October -- and the largest reversal in sentiment -- September's number was a minus 8.45%.

The stock market component of the ACI also made an impressive turnaround, gaining 2.97% for the month after falling 9.52% in September.

"We expect the market's volatility to continue for 12 months at least," said Rob Siegmann of Financial Management Group, "but this provides longer-term investors an excellent rebalancing opportunity."

Current economic outlook +7.46%
Six-month economic outlook +10.76%
12-month economic outlook +13.91%
Stock market outlook +2.97%

"There are numerous issues that continue to loom over the economy and the market," says Siegmann. "We feel these issues will be resolved with a compromise, but will not happen as quickly as the fickle market would like."

About Advisor Confidence Index's Methodology

The Advisor Confidence Index is a benchmark that gauges advisors' views on the economy. Modeled after the Conference Board Consumer Confidence Index®, the ACI captures the sentiments of 150 independent registered investment advisors (RIAs). The index's analysis is based on the number of completed surveys and reflects only information from those surveys. This information is intended to be general in nature, and these overviews are no substitute for professional, legal, or consulting advice. This information should not be construed as advice from Rydex|SGI AdvisorBenchmarking, Inc. or any of its affiliates.

About Rydex|SGI AdvisorBenchmarking, an affiliate of Rydex|SGI
Rydex|SGI AdvisorBenchmarking is a research and analysis center focused on the registered investment advisor (RIA) marketplace. Every year through its survey website, www.AdvisorBenchmarking.com, the firm conducts multiple surveys of advisors, covering a host of business management and investment management practices. The findings and analysis of the data are then released to the marketplace as annual studies, quarterly research notes, monthly newsletters, and a confidence index. The service is aimed at helping advisors grow and enhance their firms by comparing how their businesses fare against other advisors. Advisors also learn best practices of the most successful advisors in the business. AdvisorBenchmarking is an affiliate of Rydex|SGI.

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