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Ed Meek
CEO/Investment Advisor

Edge Portfolio Management

City:Winfield

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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Investment Trends: Millionaires Again to Retreat to the Investment Sidelines

For the second consecutive month, an increase in Millionaire investors indicate they do not plan in the coming month to invest.

 

| BY Donald Liebensoin


For the second consecutive month, there was an increase in Millionaire investors who indicated that in the short term they do not plan to invest, according to Spectrem Group’s monthly investment preferences survey of Affluent households.

This was a downward driver of the October Spectrem Affluent Investor Confidence Index and the Spectrem Millionaire Investor Confidence Index, which fell 2 and 6 points, respectively, from the previous month.  The market volatility of late August and September as well as continued unease over the timing of the Federal Reserve’s decision to raise interest rates continued in October. The most recent Labor Department jobs report, released in the first week of last month, found that the U.S. economy created 142,000 jobs, well below the forecast of 200,000 jobs. The Dow closed up 1.2 percent that day, but not before it initially dropped 258 points, the biggest such market swing in four years.

Market volatility was also triggered by concerns over the slowdown of China’s economy, the world’s second largest.

But while stock prices mounted a strong rebound last month (with the S&P 500 up 8.44 percent), Millionaire investors, especially, indicate concern about another pullback. Add to this are concerns that the U.S. economy is losing momentum as reflected in September U.S. retail sails edged up a mere 0.1 percent in September, according to the most recent report.

These factors compelled more Affluent investors overall to indicate they will retreat to the investment sidelines in the coming month.

Of the Affluent investors who do plan to invest, most indicate they will invest in Stock Mutual Funds and Stocks. Both vehicles, though, posted drops from the previous month; 2.15 points and 8.9 points., respectively. The intention to invest in Stock Mutual Funds is at a four-month low while intention to invest in Stocks s is at its lowest point since January 2015, and down 2.4 points. from October 2014.

Tellingly, Cash, a more conservative investment vehicle, is the only investment category that posted an increase in October; a gain of 4.34 points. to 19.60, which is down 3.60 points. from October 2014.

Spectrem Group analyzes Affluent investment preferences by Millionaire and non-Millionaire households: Millionaire investors who indicated that in the short term they plan to hold on the investment sidelines gained 5.7 points. from September, a four-month high. Non-Millionaires, though, posted a drop in those who indicated they would not be investing, from 48 points in September to 44.3, a three-month low.

Millionaire intention to invest in equities fell 11.3 points. in October, also a four-month low, while intention to invest in Cash ticked upward 7.8 points to 24.2, an 8-month high.

Non-Millionaires indicated a retreat from Stocks (24.6 points., a drop of 6.9 and a five-month low), but an increased intention to invest in Stock Mutual Funds, which posted its highest reading (30.3, a one-month gain of 2.7 points.) in three months. Both readings are basically unchanged from the same period last year.

Year-to-year, more Millionaires indicate an intention to invest in Cash, while non-Millionaires are less likely to invest in Cash as they were in October 2014 (down 6.2 points. to 14.8).

 



 

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