13pts  Spectrem Millionaire Investor Index (SMII)^®   

The Spectrem Affluent Investor Index (SAII)® plummeted 10 points, nearing it’s all-time low, and the Spectrem Millionaire Investor Index (SMII)® followed suit with a more dramatic fall (-13 points) of it’s own, the second largest drop in index history.

The indices were brought down by the huge drop in the Affluent Household Outlook which reflects the real concern that the wealthy are feeling about the economy and the stimulus package as well as dire reports of foreclosures, jobless rates growing, and another predicted 24-48 months of recession before any improvement is felt.

“Not Investing” remained low, but investors are putting their money in cash, which hit a new high this month despite the fact that basic interest rates are at a low ebb. Bonds saw slight increase from last month and reached an all-time high as well. Real Estate increased in spite of reports that new home sales are at an all-time low. Though it looks like the affluent are returning to the market they are doing so conservatively, and in a manner that is not likely to spur much growth.

There is little of concern to the affluent, these days, outside of the economy. Jobless claims hit a 26-year high and new home sales are at an all time low. Stock Market Conditions are a distant second as a story in the news most affecting the affluent’s economic outlook. Though the stock market and the economy are linked, the news has been focusing on the government economic bailout, the stimulus package, and many of the other markers of a troubled economy and a recession. It is unlikely that any concern will usurp the economy as the top story in the news any time soon.

After a rollercoaster month of governmental missteps, confusion, and market ups and downs, the Household Outlook plummeted 17.3 to it’s lowest point ever, dragging down the whole index. Company Health is a concern for the Affluent and Millionaires as U.S. jobless claims spike to a 26-year high and global unemployment soars as well. Like the rest of the country, the Affluent and Millionaires are girding their loins for what may be a very long period of economic strife and lean times. The controversial stimulus package is being debated back and forth, though it will be a while before any of that affects the economy in a measureable way. Tough times may continue for a while.

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