Certainly the fact that oil/gas prices have reached an all time high is starting to impact businesses and is a daily concern for most citizens. On top of that, the fact that many company travel budgets have been slashed, as airfare prices skyrocket in response to fuel costs and goods and services prices are also increasing due to mounting shipping costs, could be adding to the concerns of the affluent.

Though unemployment hit 5%, the wealthy seem unconcerned about losing their jobs, though the concern about a spouse losing their job rose slightly. When asked in March of this year if they felt the company or business they work for would be negatively affected by the economic environment, 31% agreed with that statement. When asked again in May, only 19% agreed.

This decrease in concern is surprising considering the overall national focus on the country’s financial situation and may be more of a correction than anything else. In general, the looming recession, higher unemployment, gas/oil prices and real estate debacle has hit the wealthy later than the average investor. CNN reported that the housing crisis is hitting the prestigious 90210 zip code in Beverly Hills and other affluent meccas like Greenwich, Connecticut. “Three of the nation's richest zip codes saw particularly steep home-price declines in the three months ending April 30, compared with the previous three months” states CNNMoney’s writer Lee Christie.

When asked if the decrease in real estate prices had been very detrimental to their overall net worth, 30% of the affluent agreed, and it is predictable that if the country’s financial woes drag on, this will increase. Both personally and professionally, wealthy investors are being affected by the economic climate. How they react in the coming months will be important to watch.

Keeping an eye on key indicators like unemployment and fuel costs, as well as the pending election is a good idea. Checking in with your financial advisor often is also wise.

Discuss this article on the forums. (0 posts)

---