Well, that didn't last long. After climbing into bullish territory last month for the first time since October 2007, the Spectrem Millionaire Investor Confidence Index (SMICI)SM dropped back into neutral territory in March. It fell from 17 to 8. The Spectrem Affluent Investor Confidence Index (SAICI)SM also dropped from 4 to 1. These sobering statistics reflect renewed concerns about the economic recovery.
This is also reflected in the percentage of investors who chose to Not Invest, which increased in March to 22.8 points, a two point bump from last month. However, investment in cash, another telltale sign of market caution, was down only slightly this month, from 50.8 points last month to 49.6 points. Between Millionaires and Non-Millionaires, for nearly every category in which investment was up for one wealth level, it was down for the other.
The overall Spectrem Affluent Household Outlook declined slightly for the second month in a row after it had posted is highest level in January since July 2007. This was driven by Millionaires' pessimistic attitudes regarding the economy, household income and assets, and company health. The overall Millionaire Outlook was 22.5 points, a three-month low. Non-Millionaire attitudes were much more optimistic, except about the economy.
The Economy and the Political Climate were once again perceived by investors to currently be the most serious threats to achieving their financial goals. But affluent and millionaire investors also expressed concern about other issues that could impact their financial position, including unemployment, market conditions, and health-related issues.