Affluent Investor Confidence Back on the Rise

The Spectrem Millionaire Investor Confidence Index (SMICI SM) advanced 5 points in April to -1, bringing the index to its highest level since December 2007, when it stood at 8.
                    
Meanwhile, the Spectrem Affluent Investor Confidence Index (SAICI SM), which measures the investment confidence and outlook of households with $500,000 or more in investable assets, rose 3 points in April to -9, which is also the index’s highest since December 2007, when it stood at zero.

“Millionaires and the broader affluent population were both more optimistic about the investment environment in April than at any time since December 2007,” said George H. Walper, Jr., President of Spectrem Group, a in a news release. “The Dow Jones Industrials surpassing the 11,000 mark was clearly a positive for the nation’s wealthiest investors. However, the outlook of both groups remains neutral with some lingering uncertainty about the economy – specifically, unemployment levels,”

In response to an open-ended question about the one factor most affecting their investment plans, affluent investors in April cited: stock market conditions (21%); the economic environment (16%); household cash flow (8%); household income (7%); retirement (7%); and the political climate (4%). Those choosing stock market conditions fell from 22% in January, the last time this question was asked, and those citing the economy fell from 20%.

Millionaires were slightly more focused on the economy (21%) than the affluent but less focused on stock market conditions (20%).

The Spectrem Affluent Investor Confidence Index (SAICISM) is based on 250 monthly interviews with the financial decisionmakers in households with $500,000 or more in investable assets. The Spectrem Millionaire Investor Confidence Index (SMICI SM) is based on a subset of the overall survey group.