Advisors in Financial Planning's survey score their own firms 85 points above the global economic system
Financial Planning's survey of 213 advisors puts confidence at minus-2 in October, down from plus-4 in July. Economic and policy outlooks fell while the score for advisors' own practices rose 9 points to plus-35.
The Investor · Invest desk
Four October scores from the advisor survey: global economic system minus 50, practice performance plus 35, overall economy plus 27, government policy minus 7.
| Figure | Value | Note | Claim |
|---|---|---|---|
| Global economic system score, October | −50 score | 3 | |
| Practice performance | 35 score | 12 | |
| Overall economy, October | 27 score | 6 | |
| Government policy | −7 score | 8 |
What happened
- The global economic system score fell 16 points, from minus-34 to minus-50, and now sits near the minus-51 recorded in October 2025.
- The overall economy score fell 11 points over three months, from plus-38 in July to plus-27 in October.
- Fifty-four percent of advisors expect more volatility in the global economic system over the next three months, up from 43% in July.
- The government policy score fell 12 points, from plus-5 to minus-7, its first negative reading since June 2024.
- Monetary policy was the biggest reason for the policy decline: 21% of advisors expect a positive effect on clients over three months and 33% a negative one.
Why it matters
- What doesn't add up contradiction Advisors expect their firms to meet or beat goals (98%, by the survey's rounded figures) in the same survey where the global economic system and policy scores both fell, so practice confidence leans on something other than the macro outlook.
- Who has to decide decision Net client risk tolerance is minus-10 (16% expect an increase, 26% a decrease), double July's minus-5, so allocation conversations are where this survey would first turn into action; it records expectations, not trades.
- What it limits constraint With the survey now quarterly, a dip that began in August or recovered in September goes unrecorded, and the next data point is a full quarter away.
- Who's exposed exposure Independent RIAs scored policy at minus-22 against minus-1 for everyone else, so they pull the policy aggregate well below the rest of the field.
Two of the scores can be rebuilt from the percentages beneath them. The 41% of advisors expecting the economy to grow, less the 14% expecting it to contract, is 27, the October economy score; July's 48% less 10% is 38, July's score [7][6][18]. The practice score works the same way: 38% expecting to outperform less 3% expecting to underperform is 35 [13][12][19]. We take the scores to be net balances of optimists over pessimists, which is our inference, and the match is exact for these two series only.
The headline is milder than the macro series because the practice series pulls the other way. The headline score fell 6 points, from plus-4 to minus-2 [21], while the global economic system score fell 16 [3].
In our view the 85-point gap between the practice score of plus-35 and the global economic system score of minus-50 [17] comes from two different questions: one asks about the world, the other asks whether a firm will hit its goals. Averaging them gives a headline that understates how far the macro reading moved. The counter-thesis is that advisors know their own firms better than they know the economy, and a more volatile market can mean more demand for advice. A second challenge is composition. The practice score sits between plus-54 for advisors paid on commission and plus-21 for those who are not [14], a 33-point gap [22].
July's 17-point gain in the global economic system score [4] came as concerns over Iran and the Strait of Hormuz looked to be fading [16]. The americanbanker.com write-up does not say what reversed that, and it does not give the scoring weights, a margin of error, the July sample size or the commission mix.
We would drop the thesis if the next reading shows the practice score sliding toward the economy scores, because the gap would then have been a lag.
What to watch
- The next FACO reading: a practice score that slides toward the economy scores would end the case that the gap reflects two different questions.
- Whether the policy score stays negative for a second reading, and whether independent RIAs remain the outlier on it.
- Any disclosure of sample size, scoring weights or commission mix that would let the 6-point headline move be tested against noise.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence60
- Adoption
- Not scored
- Hype gap−5
- Incentives
- Not scored
- Confidence60
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
In Financial Planning's October Financial Advisor Confidence Outlook survey of 213 advisors, advisor confidence scored minus-2 on a scale from minus-100 (most pessimistic) to 100 (most optimistic), down from plus-4 in July.
- [2]
The October overall outlook was the lowest overall level since April.
- [3]
The global economic system score fell 16 points, from minus-34 in July to minus-50 in October, landing near October 2025's level of minus-51.
- [4]
In July the global economic system score rose 17 points to minus-34 from minus-51 in June.
- [5]
Fifty-four percent of advisors expect the global economic system to experience more volatility over the coming three months, up from 43% in July; 43% expect it to stay the same and 4% expect less, down from 9% in July.
- [6]
The overall economy score fell 11 points over three months, from plus-38 in July to plus-27 in October.
- [7]
In October, 14% of advisors expect the economy to contract (10% in July), 41% expect it to grow (48% in July), and 45% expect it to remain constant (42% in July).
- [8]
The government policy score fell 12 points, from plus-5 to minus-7, its first negative score since June 2024 and its lowest since May 2024.
- [9]
On policy issues including new legislation and monetary policy, independent RIAs were the most pessimistic, scoring minus-22 compared with minus-1 for everyone else in the survey.
- [10]
Monetary policy was the biggest reason for the policy decline: 21% of advisors expect a positive impact on clients' financial well-being over the coming three months and 33% expect a negative impact.
- [11]
On client risk tolerance over the coming three months, 58% expect it to stay the same (67% in July), 26% expect a decrease (19% in July) and 16% expect an increase (14% in July).
- [12]
Practice performance scored plus-35, up 9 points, the highest score since May, when it was 39.
- [13]
Some 38% of advisors expect their firm to outperform its goals over the next three months, 60% anticipate meeting them and 3% expect to underperform.
- [14]
Advisors using commission payment structures scored plus-54 on confidence in their practice, compared with plus-21 for advisors who do not use commission.
- [15]
FACO's schedule has shifted from a monthly to a quarterly report.
- [16]
In July, advisors had their eyes on potential geopolitical improvements as concerns related to Iran and the Strait of Hormuz looked to be fading.
- [17]
The practice score of plus-35 sits 85 points above the global economic system score of minus-50.
- [18]
Share expecting growth less share expecting contraction is 41 - 14 = 27 in October and 48 - 10 = 38 in July, matching the reported economy scores of plus-27 and plus-38.
- [19]
Share expecting to outperform goals less share expecting to underperform is 38 - 3 = 35, matching the reported practice score of plus-35.
- [20]
Net expected change in client risk tolerance (share expecting an increase less share expecting a decrease) is minus-10 in October and minus-5 in July.
- [21]
The headline confidence score fell 6 points between July and October.
- [22]
The commission group's practice score is 33 points above the non-commission group's.
- [23]
By the survey's rounded figures, 98% of advisors expect their firm to meet or outperform its goals.
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Sources
1 independent publisher whose own reporting we read for this story.
- americanbanker.comAmid pessimistic economic and policy sentiments, advisors see the potential in their firms
1 article · October 15, 2026
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