Although financial advisors largely support Mitt Romney as the next U.S. president, most expect President Obama will serve a second term, according to an SEI Quick Poll on Wednesday. Furthermore, an “overwhelming majority” of advisors say rather than one party gaining control, November’s elections will result in a split government.
An FSI poll conducted in early February, when Newt Gingrich, Ron Paul and Rick Santorum were still campaigning, found 81% of advisors supported Romney over Obama and that about three-quarters would support any other candidate than Obama.
“Regardless of who wins the November election, advisors are keenly aware that what does or does not happen in Washington has a direct impact on the markets and, ultimately, on their clients’ portfolios,” Steve Onofrio, managing director for SEI Advisor Network, said in a press release. “The challenge for advisors is keeping an eye on the shifting global economic and political landscape while still managing every other aspect of their businesses effectively.”
That challenge is one that troubles advisors. Although 77% of advisors believe the economy will recover, they agree it will take time for that to happen. Two-thirds say the “pessimism bubble” is not going away.
The intersection of politics and the economy is a major source of stress for advisors. The top concerns cited in the survey were entitlements, logjams in Congress and tax increases in 2013.
The survey was conducted at SEI’s National Strategic Advisor Conference in May among approximately 125 financial advisors.