New for 2026
This Index now reflects a broader view of the advisor environment, incorporating insights from financial advisors across channels while maintaining a consistent sample of RIAs for historical comparison.
Advisor Sentiment: Q2 2026
The Financial Advisor Economic Outlook Index slipped to 55 in the second quarter of 2026, down from 59 last quarter. But don't mistake a lower score for a bearish outlook.
Advisors still expect markets to move higher. What changed was everything around those expectations. Inflation concerns returned, geopolitical risks intensified, and the path forward became more complicated. As a result, advisors are becoming more selective, emphasizing diversification, flexibility, and portfolios built to adapt to a wider range of outcomes.
Key Insights
- International investing is having a moment
International equities saw the largest allocation increases this quarter as advisors looked beyond domestic markets for new opportunities and diversification benefits. - Cash is losing its appeal
Financial professionals most frequently reduced cash allocations over the past six months, signaling a growing willingness to put capital back to work despite an uncertain environment. - Preparing for multiple outcomes is becoming the new playbook
Rather than positioning portfolios around a single market view, many advisors are building strategies designed to perform across a range of economic scenarios. - Technology is changing how advisors work
Half of advisors now use AI to assist with client meetings, and more than one-third say technology is changing how they evaluate and implement annuity solutions.
Why It Matters:
The second quarter wasn't defined by a lack of confidence. It was defined by adaptation. Advisors are rethinking where they invest, how they manage risk, and the tools they use to serve clients. Portfolio construction is becoming more dynamic, with greater emphasis on diversification, flexibility, and preparing for a wider range of potential outcomes. At the same time, technology is accelerating change across the industry, helping advisors work more efficiently and rethink how investment solutions fit into client portfolios.
The takeaway is clear: today's advisors are not standing still. They are evolving their strategies and embracing new tools to help clients navigate an increasingly complex market environment.
Financial Advisor Economic Outlook Snapshot |