The Spectrem Affluent Household Outlook fell 28.17 points to -17.52, its lowest reading since August 2011.
The overall Outlook, a survey of Affluent attitudes toward four financial factors that impact their daily lives, slipped back into negative territory after a positive reading in October. For the first time in a year, each of the Outlook components posted simultaneous negative readings.
Perhaps it’s a case of Post-election Trauma Syndrome (PETS) or increasing concerns over the as-yet unresolved fiscal cliff. Affluent households surveyed by Millionaire Corner are not at all confident that the White House and Congress will agree to a bipartisan solution to avert the tax cuts and mandatory spending cuts scheduled to take affect at the end of the year. Eighty-six percent said they believe that their taxes are going to increase.
Regarding the Affluent Household Outlook, confidence in the Economy took the biggest hit, dropping -38.79 points to -33.92, its lowest reading since September 2011. Household Assets fell 34.78 points to -9.95, its lowest reading since November 2011. Company Health took a 28.86-point dive to -24.02, a more than eight-year low. Household Income dropped 10.27 points to
-2.21, another one-year low.
Our monthly survey of Affluent investor attitudes and behaviors further breaks down findings by Millionaire and Non-Millionaire households. In both, the overall Outlooks suffered double-digit drops. The overall Millionaire Outlook plummeted 31.75 points to -15.25, the lowest reading since October 2011, while the overall Non-Millionaire Outlook fell 24.74 points to -20.23, the lowest reading since August. 2011.
Millionaire and Non-Millionaire households posted declines in every Outlook component, but the Millionaires readings were more severe. Confidence in the Economy fell 43.20 points to
-35.69, the lowest reading since September 2011. Household Assets dropped 39.81 to -2.37, a one-year low. Company Health dropped 33.44 points to -23.68, a more than eight-year low. Household Income dripped 10.58 points to 0.70, another one-year low.
The picture was near equally pessimistic in Non-Millionaire households. The Economy dropped 33.89 points to -31.80, a one-year low, while Household Assets fell 30.59 points to -19, a 15-month low. Company Health dropped 24.74 points to -24.42, the lowest reading since February 2009, while Household Income fell 10.39 points to -5.71.
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.