8pts  Spectrem Millionaire Investor Index (SMII)^®   

^{Millionaires lose confidence, dropping the index to the lowest point ever, from –5 to –13.}

 10pts  Spectrem Affluent Investor Index (SAII)^®  

As the financial markets surge up and down on an almost daily basis, and a continuous stream of negative economic news floods the media, worried and pessimistic Millionaires and Affluent are turning away from all major investment classes, except for Cash.

Both the Spectrem Millionaire Investor Index (SMII)and Spectrem Affluent Investor Index (SAII) dropped to their lowest points since the beginning of the measure in 2004. Considering the instability in the markets and the panic many are feeling as they watch their balances rise and fall Not Investing may continue to rise or stay elevated in the coming months as the Affluent wait out current conditions.

Both the Affluent and Millionaires feel the Economy is the most serious threat to achieving their household’s financial goals. This is not surprising considering the rollercoaster market, desperate Fed interest rate cuts, continued real estate and credit crisis and the negative media attention the looming recession has been receiving. The Economy as a concern is slightly higher for Millionaires than for the Affluent, and it has steadily risen in importance since March 2007. Of secondary concern is the Political Climate, and presumably the upcoming election. Market Conditions are a distant third, but at their highest point in a year. Spectrem’s Affluent Household Outlook dropped to its second lowest point (-4). Dragging it down were the components of Household Income which dropped 11.6 and Household Assets which dropped 10 points. Surprisingly, Company Health rose from 3.9 to 6.0 and the Economy component rose slightly was Cash, again signaling an uneasiness with investing in Stocks, Bonds, Mutual Funds and Real Estate, all of which fell this month.  The sharpest drop of all investment types was in Stock Mutual Funds, which dove from 29.5 to 22, nearing their all time low of 21.2 from September 2007. Stocks matched their low from September 2007 at 14.8 and Bonds and Real Estate, neared their lows. Considering the instability in the markets and the panic many are feeling, Not Investing may continue to rise or stay high in the coming months as the Affluent wait out the current conditions.

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