News stories about the political environment are having the biggest impact on affluent investors' economic outlook.
Between Donald Trump’s unprecedented ascendancy as the presumptive Republican nominee for President and the increasingly divisive race between Hillary Clinton and Bernie Sanders for the Democrat nomination, election news stories are having the greatest impact on the economic outlook of Affluent investors, a May Spectrem Group survey finds.
Half of Affluent respondents said that news stories about the political environment are most affecting their economic outlook. This is up from 22 percent from last February, when this survey question was last asked.
Stories about this tumultuous president campaign (with five months still to go) are dominating the news cycle. This survey was fielded between May 19-25. On May 26, the Associated Press reported that Trump had enough delegates to clinch the Republican nomination. In the weeks prior, news stories focused on reported disunity in the party over this prospect. Paul Ryan, Speaker of the House of Representatives, had a widely-covered meeting with Trump, after which he continued to withhold his endorsement. On the Democratic side, Bernie Sanders vowed last month to stay in the race “until the last vote is counted.” On the last day that this survey was fielded, Clinton faced renewed scrutiny and criticism following the release of an inspector general report that determined she broke State Department rules by using a personal server for her emails.
That Affluent investors consider news stories about the political environment to be having the biggest effect on their economic outlook indicates uncertainty over the differences in the proposed policies of the candidates and how they will affect the economy should either be elected.
The next largest percentage of Affluent investors (12 percent; up from 3 percent last February) cite news stories about interest rates increases as those having the most impact on their economic outlook. Last month, the release of the April Federal Reserve Open Market Committee meeting minutes which showed that the Fed is open to raising interest rates as soon as this month, sparked a week of market volatility.
When asked which news stories were most affecting their economic outlook, just 6 percent said Stock Market Condtions and less than 5 percent said percent said International Problems (4 percent; down from 17 percent three months ago) and the Economy, Unemployment, Oil prices, and Terrorism (3 percent each).
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.