Throughout 2015, the Spectrem Affluent Investor Confidence indices were significantly higher for both Affluent and Millionaire men than for women.
Each month, Spectrem Group takes the pulse of the Affluent investor with its Spectrem Affluent Investor Confidence indices. Instituted in February 2004, the Spectrem Affluent Investor Confidence Index (SAICI®) and the Spectrem Millionaire Investor Confidence Index (SMICI®) measure the investment confidence and investment and household outlooks of the 16 million households in America with more than $500,000 of investable assets and those with at least $1 million, respectively.
When analyzed by gender, the indices reveal a consistent confidence gap between men and women investors. Men are more likely than women to be more engaged with the market and have more confidence in financial factors that impact their daily lives, such as household income, household assets and the economy.
For example, last month’s SAICI for men is at 1, while for women it is at -10. The SMICI for men is at 5, while for women it is at -4. In January, the SAICI for men was -3, while for women it was -5. The January SMICI for men was -1 and for women, -8.
Spectrem Group’s research of investor attitudes and financial behaviors finds that women are more likely than men to self-report a lack of confidence in their financial knowledge and investment acumen. They are likely than men to say that they are “not very” or “not at all” knowledgeable about financial products and investing, while men are more likely to indicate they are “very knowledgeable” or “fairly knowledgeable.”
One of the drivers of the Spectrem Affluent Investor indices is an investment preferences survey in which Affluent investors are asked how they would invest $100,000 in the coming month if it were made available to them. In February, more women than men indicated that they would hold on the investment sidelines and not invest (39 points vs. 32 points). Intention to invest in Stocks was significantly higher for men than for women (31 points vs. 16 points), while women were more likely to say they would invest in the more conservative Cash (24 points cs. 19 points).
Another driver of the indices is the Spectrem Affluent Household Outlook. In February, the Outlook for men was at 6 points vs. 2.08 for women. Men reported greater confidence than women in Household Income, Household Assets, Company Health and the Economy.
Throughout 2015, the Affluent Investor indices were significantly higher for both Affluent and Millionaire men than for women. In September, for example, each index dropped three points following a tumultuous August for the market due in large part to China’s economic slowdown. At that time, the Affluent Index was at 9 for men and 0 for women, while the Millionaire Index was at 12 for men and 2 for women.
Likewise, the Specrrem Affluent Household Outlook was higher for men than for women in 11 of the 12 months last year. Even in February, when the SAICI rose to a five-month high on lower gas prices, a strong jobs report and a strong Dow performance, the Household Outlook for men was roughly 35 points compared to 19 points for women.
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.