New research finds the presidential election will have a greater effect on the choices of Millionaire investors vs. non-Millionaires. Learn more.
Next week’s presidential election will have a greater impact the financial decisions of Millionaire investors than those of non-Millionaires, according to Millionaire Corner’s monthly survey for October, which tracks a greater sensitivity to national political events among more affluent investors.
Regardless of whether Obama or Romney wins the election, three of every 10 Millionaire investors say they will likely change their asset allocation in response. In comparison, 20 percent of individuals with less than $100,000 in investable assets are likely to alter their investment portfolio in response to the election.
“Our ongoing research shows that, as a group, Millionaires are knowledgeable investors who take a hands-on approach to managing their wealth,” said Catherine McBreen, president of Millionaire Corner. “Our latest survey results indicate that Millionaire investors are staying abreast of political developments and understand the economic implications of a victory for either side.”
More than one-third (36 percent) of Millionaires surveyed in our September poll indicated they were “very worried” about the upcoming election, compared to 28 percent of investors with less than $100,000. (Concern was gauged using a sliding 10-point scale, with 1 signifying very worried and 10, not at all worried.)
The economy ranked as the most important election issue by far among Millionaire investors. Nearly 46 percent cited the economy as their most pressing concern. The national debt ranked second and was cited as most pressing by 19 percent of Millionaires. Healthcare ranked as the third most important election issue and was cited by 11 percent of Millionaires.
Millionaire investors are also more likely than non-Millionaires to react should Congress fail to quickly address the issues leading to the fiscal cliff, according to our October survey. More than 40 percent of Millionaire investors indicate they would reallocate their investments in such a scenario, compared to 20 percent of individuals with less than $100,000 to invest.