The Spectrem Affluent Investor Confidence Index (SAICI)SM posted a 1 point gain to a neutral -8. This is the highest reading since May 2011 and the fifth consecutive month that this index has registered an increase. The Spectrem Millionaire Investor Confidence Index (SMICI)SMalso gained 1 point to a neutral -2, its highest level in seven months.
The New Year began with continued investment wariness. In our monthly survey of investment preferences, Not Investing rose 2.6 points. But there was movement (albeit slight) away from Cash and toward Stocks, especially by Non-Millionaires. Investment in Stocks, in these households, surged to a near year-high. The number of Non-Millionaires who chose to Not Invest was the lowest since June 2011.
The Affluent Household Outlook, a measure of investor confidence regarding financial components that impact daily lives, entered positive territory for the first time in six months, driven in large part by a greater show of confidence in the Economy. While readings were in negative territory, this component showed significant gains over the previous month in Millionaire and Non-Millionaire households. There was also increased investor confidence in Household Assets.
Pundits dubbed 2011 “the Year of Volatility” (aka “the Year of Uncertainty”), so it is not surprising that investors said Stock Market Conditions were the one factor most affecting their investment plans. Just over twice as many Affluent investors cited this issue over the next most cited factor, the Economic Environment. At this time, the Political Climate is not as big a factor in their investment plans, but as the presidential campaign heats up, policy tensions are bound to increase, as witnessed in the renewed debate over President Obama’s request to raise the debt ceiling an additional $1.2 trillion, which is expected to cover borrowing until after the November election.
