Millionaires who indicated they would hold on the investment sidelines in the short term fell to a two-year low in August
Each month, Spectrem Group polls Affluent investors how they intend to invest in the coming month. The August survey was fielded between Aug. 14-20 before the dramatic sell-off on Aug. 24 when the Dow suffered its worst decline (588 pts.) since August 2011. But Millionaire investors tend to be more confident than their non-Millionaire counterparts and even with the continued instability in Greece and news Aug. 12 that China, the world’s second largest economy, the Millionaires who indicated they would hold on the investment sidelines in the short term fell to a two-year low in August (20.9 pts., down from 32 pts. in July).
Non-Millionaires indicating they would hold on the investment sidelines in the coming month, however, rose to a nine-month high (47.4 points, up from 40.2 pts. the previous month).
Among Affluent investors overall, intention to invest in equities is basically unchanged from last month. Stock Mutual Funds dipped 2 points since July. Both categories are up six points from August 2014. Affluent investors instead indicate in the coming month an increased preference investment preference for more conservative vehicles. Intention to invest in Cash and Bonds in the coming month is up 2 points for both categories.
Intention to invest in Real Estate gained 3.60 points to 9.20, a three-month high. Several reports released in August indicate a growing confidence in the U.S. housing market. The National Association of Home Builders released a report on Aug. 17 that found home-builder confidence in the market for new single-family homes at its highest level since November 2005.
Spectrem Group analyzes Affluent investment preferences by Millionaire and non-Millionaire households. In the August survey, non-Millionaires acted as yin to the Millionaires’ yang when it came to equity investment. Non-Millionaires indicated a retreat in the coming month from Stocks (a three-point low) and Stock Mutual Funds (a year low).
In comparison, Millionaire intention to invest in stocks rose to a near two-year high (45.5 points, up 4.9 points from July) and Stock Mutual Funds a four-month high (44 points, up 2.6 points), indicating a more resilient investment mindset.
Both demographics indicated an increase in the coming month in their investment in Cash, Bonds and Real Estate.
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.