©Spectrem Group 2011
The Spectrem Millionaire Investor Confidence Index (SMICISM) dipped further into neutral territory in April, dropping nine points to -1, the lowest reading since September 2010. The Spectrem Affluent Investor Confidence Index (SAICISM) dropped eight points to -7.
This lack of confidence in a sustained recovery is reflected in the increase in investors who chose to Not Invest. Overall investing in Stocks also saw a sharp decline, further reflecting a reluctance to invest in the markets.
The overall Spectrem Affluent Household Outlook decreased for the third straight month. While Millionaire attitudes were more positive than Non-Millionaires, particularly regarding Company Health, there were decreases in almost every Outlook component, most significantly regarding the Economy for both types of investors.
Not surprisingly, investors said that the Economic Environment and Stock Market Conditions were the two factors that are most affecting their investment plans. Concern over the Economic Environment, in fact, was at its highest since January 2009. For the first time in over a year, investors cited Retirement as a factor affecting their investment plans. There are genuine concerns among Baby Boomers impacted by the recession that they will have to delay their retirement plans.
This downturn in investor confidence may reflect a simmering lack of confidence in the direction of the economy, no doubt fueled by concerns about the deficit and the bruising budget battles and combating spending plans offered by the Republicans and Democrats.