Investment preferences and economic outlook indicate cautious optimism
The Spectrem Millionaire Investor Confidence Index (SMICI®) jumped 6 points to -2, the highest level since last April, according to our monthly Spectrem Group survey of Affluent households.
The Spectrem Affluent Investor Confidence Index (SAICI®) ticked upward 1point to 2, its highest reading since last May.
The improvement in both indexes can be traced to several factors. The Spectrem Affluent Household Outlook, a survey of attitudes toward financial issues that impact Affluent investors’ daily lives, showed significant increases in all surveyed components, including household income, household assets, company health and the economy, which saw the largest increase in more than a year.
October was the first time since May when all of the components simultaenously posted positive readings.
Affluent investors’ engagement in the market did not change significantly over the past month. There was basically no change in the number of Millionaires and Non-Millionaires who opted to “Not Invest.” This was coupled with a slight increase in cash investments. But there was increased investment in stocks, particularly in Non-Millionaire households.
With the election just one week away, Affluent investors surveyed by Spectrem Group said that Stock Market Conditions, along with the Political Climate were the factors most affecting their current investment plans. The ramifications to the economic recovery of the as-yet unresolved fiscal cliff are particularly worrisome.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.