In May, non-Millionaires expressed more confidence in the economy than their wealthier counterparts.
The Spectrem Millionaire Investor Confidence Index (SMICI®) gained five points in May to 15, a five-month high. The Spectrem Affluent Investor Confidence Index (SAICI®) gained 4 points to 8.
The indices, compiled by Spectrem Group, a market research and consulting firm specializing in the affluent and retirement markets, measure the investment confidence and outlook of the 16MM households in America with more than $500,000 of investable assets (SAICI), and those with $1MM or more (SMICI).
Millionaire investors were buoyed by the April Bureau of Labor Statistics jobs report released in the first week of the month, which found that the economy had added 223,000 jobs, a substantial gain from the 125,000 jobs added the previous month. The unemployment rate held steady at 5.4 percent, the lowest since May 2008. In addition, the month began with initial claims for unemployment benefits dropping to a 15-year low.
There was other positive economic news to help lift the indices, including a National Association of Realtors report home sales at their highest since 2006.
Affluent investors did indicate they mostly intend to stay on the sidelines in the coming month, but countering this was a more positive outlook on their personal financial situation. The May Spectrem Affluent Household Outlook, a monthly measure of affluent confidence in four financial factors that impact their daily lives, rose to a three-month high and is three points higher than at the same period last year. Affluent investors expressed greater confidence in household assets and income as well as company health.
On the economy, though, non-Millionaires in May expressed more confidence in the economy than their wealthier counterparts. Non-Millionaire confidence in the Economy gained 7.2 points to 21.02, a six-month high. In comparison, Millionaire confidence in the economy plunged in May 9.74 points to 9.16, a seven-month low.
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.