A majority of financial advisors expect President Barack Obama to win the 2012 election even though they are rooting for Mitt Romney to take the White House, according to a poll of 125 financial advisors conducted this month by SEI, a provider of investment and fund processing and investment management business outsourcing solutions.
The overwhelming majority said they believed the November elections will result in a split government, leading to continued log jams in Congress, one of the biggest worries on advisors’ minds. They also listed entitlements and tax increases in 2013 among their top concerns.
The advisors were conflicted about their outlook for the economy, according to the poll. A majority of the advisors (77%) believe that the U.S. economy will recover, albeit slowly, and predicted strong stock-market gains in 2012. That said, two-thirds said the “pessimism bubble” is here to stay.
“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,” said Steve Onofrio, managing director of SEI Advisor Network, a unit of SEI.
The advisors polled are industry veterans who primarily manage large books of business, SEI said in a statement. Half have been in the business more than 20 years and an equal percentage manage more than $150 million in assets. The poll was conducted at SEI’s National Strategic Advisor Conference.