Advisor confidence dropped slightly in July, according to the latest figures from Rydex/SGI’s Advisor Confidence Index, from 103.12 in June to 104.29.

Effectively, this means advisors remain neutral on both the economy and the stock market.

Accordingly, advisors are playing it safe with clients’ money. One third of advisors increased their allocations to cash in the first two quarters, while one-fourth of advisors bought more mid-cap growth and large-cap value stocks.

While the index is just a snapshot and doesn’t aim to predict advisors’ future sentiment, Maya Ivanova, Rydex/SGI’s senior research manager, suspects advisors will probably now start moving out of cash and into more diverse investments.

However, with consumer confidence also taking a knock recently, Ivanova doesn’t anticipate a jump in confidence any time soon.