Millionaire investors blame weak economy on president and Congress

August, 2010
Investors are frustrated with the economy. Slightly more than one-third (36 percent) of investors believe the stock market will improve within the next six months. Forty percent of investors feel the unemployment situation will improve in the next six months. In contrast, 26 percent of investors do not think the markets will improve and 32 percent believe that unemployment levels will not improve. Thirty eight percent of investors feel the markets will stay the same and 28 percent believe that unemployment levels will remain the same. Overall roughly 60 percent of investors have a relatively dour view of the next six months.
What do investors identify as having the biggest impact on the success or failure of the U.S. Economy? Thirty-eight percent blame presidential and congressional leadership for the state of the economy.

While presidential and congressional leadership (or failure thereof) accounts for the largest portion of investor frustration, unemployment levels are not far behind. Twenty-nine percent of investors feel the unemployment rate has the biggest impact on the economy. Thirteen percent blame the size of the deficit, while 5 percent blame state and local leadership.
It is unlikely that investors are going to gain confidence as the U.S. faces a fall filled with political strife. Since most investors have already adopted a somewhat conservative investment attitude, it is unlikely that anyone will be changing their asset allocation soon. It is important to remember that it is always about the long term.