Spectrem Millionaire Investor Index (SMII)^®   

Millionaires lost much confidence about the economy, pushing the index lower to its lowest point.

 Spectrem Affluent Investor Index (SAII)^®   

Affluent lost confidence in the economy, pushing their index to the lowest point ever, in a move mirroring the Millionaire Investor Index.

The January 2008 economic and market woes that affected not just the U.S. markets, but also the Shanghai Composite and Mumbai’s Sensex Index have had a profoundly negative affect on Affluent and Millionaire investors, as the indices fell to their lowest point in Spectrem Index history. Recession looms large over the U.S. economy, making its presence felt in many Spectrem Indices measures.

With the media, lawmakers, and economists asking what will happen in the future to jobs, inflation, and the falling dollar, it is no wonder the affluent reacted negatively. The Spectrem Affluent Index (SAII)® which fell 14 pts. From 8 to -6. This is the steepest single month decline for the Affluent Index (the second sharpest decline was of 10 points from February to March 2007, in reaction to a global stock sell off), and matches the steepest decline for the Millionaire Index (also in March 2007).

Not Investing fell (showing a return to investing) as the affluent rushed back to the safety of Cash, in the face of what appears to be the beginning of an unofficial recession. Also down were Stocks and Real Estate, both at new all-time lows. Bond Mutual Funds saw a slight dip.

In this month’s Perceptions of Issues, in response to the question, “Thinking about your household’s investment portfolio, which one factor would you say most affects your investment plans today?” Strong concerns about the Economic Environment caused this response to rise 7 points, since Oct. 2007, from 12 to 19%. 

Stock Market conditions continue to weigh heavily on the minds of the Affluent and Millionaires, as they consider affects on their investment portfolio’s. The measure has steadily risen 13 points, since April 2007, from 13 to 26%.

Intriguing this month was the jump in Retirement as a factor that affects investment plans. Echoing affluent worry about how the markets might affect their retirement funds, concerns about Retirement soared up sharply 7 points, from 6 to 13%, since Oct. 2007.

Spectrem’s Affluent Household Outlook fell to it’s lowest point ever (-6.7) in the wake of foreign and domestic market instability, continuing real estate market and credit woes, increased unemployment, as well as decreased consumer spending.  Signs that some point to as collective indicators of a coming recession.  Every measure of the Affluent Household Outlook fell, with the economy measure leading the downward charge with a drop of 26 points, from –18.18 to –44.2 this month. Considering the grizzled state of the market and economy, this is no surprise.  Non-millionaires felt this much more keenly than their millionaire counterparts, as their sentiments sank father in each category (including household income, assets, and company health), dragging the overall outlook down with them. 

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