Advisers dubious about chances of government action – any government action

FSI poll shows expectations of tepid growth; 'grand bargain' a pipe dream

Independent financial advisers expect another year of tepid economic growth in the U.S. as lawmakers continue to avoid a permanent deal on the country’s debt issues.
Most advisers — nearly six in 10 — expect the economy and stock market to stay flat next year, but about a third expect improvement in both, according to poll results released on Thursday by the Financial Services Institute.
(Solid economic news puts tapering back on the agenda)
While the vast majority of advisers, 77%, expect Congress to pass legislation to fund the government in the short term after Jan. 15, few expect a long-term deal, or grand bargain — or another government shutdown like the 16-day shutdown last month.
More than half of the advisers surveyed think spending should be cut as part of a grand bargain, but only four in 10 think taxes should be raised as spending is cut.
Advisers were evenly split on the question of whether their workload increased as a result of clients’ real or perceived problems related to the government shutdown and debt ceiling debate. Forty-six percent think the government shutdown and fight over raising the debt ceiling negatively affected their clients.
(Is Obama already a lame duck?)
Unsurprisingly, 91% of FSI members who responded to the survey are opposed to a Labor Department’s proposal to redefine the term “fiduciary” if it prohibited advisers earning commissions on retirement-plan advice.
The FSI, an advocacy group for independent advisers and broker-dealers, sent the online survey to all of its 35,000 adviser members; 2,528 responded between Nov. 4 and Nov. 8, the FSI said.