Affluent Investor Confidence Continues to Rise

The Spectrem Affluent Investor Confidence Index (SAICI)^SMincreased four points to a neutral -9. This is the fourth consecutive month that this index has posted gains. The Spectrem Millionaire Investor Confidence Index (SMICI)^SMgained three points to a neutral -3, its highest level since June, and the second consecutive month of improvement.

Driving these gains was that more of the Affluent are investing. In our monthly survey of investment preferences, “Not Invest” dropped to its lowest level since last May. However, back in the market, many opted for more conservative investments, including Cash and Bonds, which both posted gains in Millionaire and Non-Millionaire households.

“People are starting to think, ‘Maybe I need to get off the sidelines and invest, but I’m going to be safe and stock with Cash,’” said Tom Wynn, Spectrem Group Director of Research. “This is different from doing nothing. But for this to be significant, we need to see a three-to-four month trend.”

The Affluent Household Outlook continued to make gains this month, as investors surveyed about financial factors that impact their daily lives expressed a greater confidence in Household Assets and the Economy.

But these investors view the increasingly contentious Political Climate and the Economy as being the most serious threats to achieving their household’s financial goals. Of this group, Millionaires especially are concerned about the increasingly partisan atmosphere in Washington that this month saw President Obama and lawmakers facing a year-end deadline to agree to extend the payroll tax cut and extend unemployment benefits. Millionaires also are keeping a close watch on the still-unresolved eurozone crisis that has triggered stock market volatility in this country.