Financial advisers across the world are feeling more confident now about the global economy than at any point since the first quarter of 2012, according to research conducted by Skandia International, part of Old Mutual Wealth.
In third quarter of 2013 advisers rated their confidence as 6.1 out of 10, this compares to 5.8 in second quarter of 2013 and 5.6 in third quarter of 2012.
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According to the study, advisers are also feeling more confident about their local economy have rated it 6.5 out of 10, this too is a new high. This compares to 6.2 in second quarter of 2013 and 5.5 in third quarter of 2012.
Asian advisers are currently leading the way in confidence, rating their confidence in the global economy as 6.4 out of 10 and confidence in their local economy as 6.8 out of 10.
Advisers based in Europe were found to the least confident about their local economy.
The study report says that advisers see global contagion as their biggest economic threat (16%) followed by political instability (15%) and inflation (14%). Results did vary on a regional level, with the UK and Europe stating the European debt crisis as their biggest economic threat.
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By GlobalDataAdvisers believe the biggest challenge to doing business over the next 12 months is regulatory requirements (32%). They also believe market volatility (25%) and low consumer confidence (18%) are key challenges.
On a regional level, advisers in the UK and Europe said they consider regulatory requirements to be the biggest challenge, whereas advisers in Asia and the Middle East considered market volatility to be the biggest challenge.
Phil Oxenham, head of proposition marketing at Skandia, said: "The results from the survey are a clear sign that confidence across all markets is improving. There are still local concerns, with the European debt crisis continuing to loom, and political uncertainty continuing in the Middle East. However, despite these local concerns, advisers do still have an increased confidence in their local economy and in the global economy.
"The increase in adviser confidence is likely to be followed by an increase in customer confidence, as we often see a lag between the two. When confidence picks up and stock markets improve, investors normally return to the equity markets seeking better returns on their investments. Investors who return to the market after it recovers often miss out on a key part of the market uplift. Rather than ‘timing the market’, customers need to understand that ‘time in the market’ can be more beneficial over the longer term."
