More than half of the advisors surveyed (60%) think that the U.S. economy will emerge from recession in 2010. And more than one-third of advisors surveyed said that it will take investors more than six years to recoup portfolio losses.

Economic market outlook is slightly more optimistic

The Advisor Confidence Index(TM), which had declined in February, improved in March -- the most significant upward movement in the last seven months. Recent government spending and stimulus programs paved the way for the increase in advisors' confidence. Advisors "are beginning to see a tiny speck of light at the end of the tunnel" said Jim Elder of Florida-based ElderAdo Financial. "As the stock market begins to stabilize and economic reports are less gloom and doom, consumers will once again go back to their spending habits," added Mr. Elder.

Advisors are most optimistic about the six-month economic outlook (+8.35%) than about the other three elements used to calculate the ACI. A closer look at the components reveals the following:

 Current economic outlook            +5.57%                                     ------ Six-month economic outlook          +8.35%                                     ------ 12-month economic outlook           +7.94%                                     ------ Stock market outlook                +1.73%                                     ------ 

Advisor vs. consumer confidence

The Conference Board Consumer Confidence Index(TM), which had decreased in January, inched lower in February and continues to be at a historic low. The index was at 25 (1985=100), down from 37 in January.

Notable comments from participating advisors

Most of the advisors who participate in the survey elect to have their names made available to reporters who would like to interview them about their economic sentiments. AdvisorBenchmarking can facilitate such interviews for reporters.

"Everyone seems focused on how bad things are and what can still go wrong, and no one seems to be asking what could go right. This could mean that we've had sufficient capitulation to be at or close to a bottom for the financial markets. Valuations are also attractive. However, we are still using a short-term defensive strategy involving cash and very short-term high quality bonds for two to four years worth of contingency funds, and then a corresponding offensive strategy for longer-term funds using mainly high-quality stocks. Initial TALF results look promising. Treasury Secretary Tim Geithner may yet live up to his hype."

-- Bill Ramsay, Financial Symmetry Inc.

"Investors who believe that they will recoup their portfolio losses in a year or two don't understand economics. When something goes down 40% it then needs to appreciate 66.6667 to get back to even and when you factor in the average market gains over the last 70 years, that comes out to about a six-year recoup period. To believe it will take less time is like believing in Santa Claus and the Easter Bunny."

-- David Cramer, Cramer Financial Services

"In these uncertain times, Smith & Howard Wealth Management continues to use structured notes as part of our asset allocation process.