Market Outlook Turned Negative in March
Financial advisor confidence in both the economy overall and the stock market decreased notably in March 2025.
For the first time in 15 months, confidence in the stock market fell below the neutral index score of 100, to 87, a 26% drop from the previous month. The broader market fell 5.8% in March, as reflected in the performance of the S&P 500.
Only 22% of financial advisors had something positive to say about the markets in March. Almost half (48%) expect a further decline over the next six months. Regardless of the current market turmoil, over half of advisors (57%) expected markets to be higher by March 2026.
The advisor sentiment reading on the economy also fell in March but, at 101, remains slightly above neutral. Advisors see further erosion in the economy over the next six months. Half (50%) of respondents feel the economy’s health will be somewhat or much worse than in March, while an equal percentage see the economy rebounding in one year’s time.
Advisors responded to the ASI survey in March, before the full extent of President Donald Trump’s tariff plans were announced on April 2. Still, many surveyed advisors expressed significant anxiety around tariff policies, which have introduced uncertainty, market volatility and client concern.
Opinions varied on likely outcomes: some foresee eventual economic benefits like fairer trade and manufacturing revival, while others anticipate ongoing negative impacts such as inflation, reduced consumer spending and economic slowdown, according to comments that accompanied the survey response.
Respondents also highlighted a disconnect between generally healthy economic indicators and poor consumer sentiment, negatively influencing market perceptions and investor behavior. Broader structural concerns—including national debt, wealth inequality, erosion of U.S. global leadership and social disruption—are also recognized as significant long-term economic risks.
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