Pessimistic Millionaire Concerns Drive Down Outlook

At 17.9 points, the overall Spectrem Affluent Household Outlook, which is based on investor attitudes regarding issues that impact their daily lives, declined slightly for the second month in a row after it had posted is highest level since July 2007 in January.
While Household Income increased overall from 11.6 points last month to 18 in March, the other Outlook components decreased. The steepest drop for the second month in a row was the Economy, which fell from 25.2 points to 20.4. Household Assets fell from 20.8 points to 20, and Company Health decreased from 25.2 points to 20.4.
Non-Millionaire’s had a more optimistic Outlook, which jumped to 13.4 points from 3.7 last month. While their attitude toward the Economy dropped to 9.3 points from 10.3, it wasn’t as severe as last month’s 33.7 point drop. Household Income surpassed the ground it lost in February, increasing from -1.9 points to 19.6. Household Assets (at 12.4 points) and Company Health (12.4) also posted impressive increases from last month of 6.8 and 11.5 points, respectively.
Pessimistic Millionaire attitudes, in an about face from February, drove this month’s Outlook decline and suggest they believe that the economic recovery has stalled. The overall Millionaire Outlook was 22.5 points, a three-month low and a sharp drop from February’s reading of 32.5. Attitudes toward the Economy, which last month were at a nearly seven-year high at 42.5 points, dropped to 28.7. Household Income dropped to 18 points from 23.3 last month, Household Assets fell from 35 points to 27.9, and Company Health plummeted from 29.2 to 14.8.