A Charles Schwab survey of financial advisors around the country, conducted in January, shows that people who manage money are continuing to get more and more bullish on the economy. Nearly 40 percent are expecting to put more money into American large-cap stocks over the next six months. Only 27 percent gave that answer in the last Schwab survey, conducted last July.
But everyone understands that investors are more optimistic now than they were earlier in this economic recovery. Perhaps more significant is that these advisors report that they think that other economic activity is about to rebound as well. A full two thirds say that they expect their clients to increase their consumer spending over the next six months. Last July, only 42 percent of the advisors surveyed felt the same way.
The markets haven't been hurting over the past few months; what the economy needs now is more spending at the consumer level. The idea that people will be putting more money into the stock market is good, but the idea that they'll be spending more is even better.
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