SOURCE: Spectrem Group

December 30, 2009 08:00 ET

Spectrem Affluent Investor Confidence Index (SAICI (SM)) Falls 5 Points in December to End Year at -15

Returns to Mildly Bearish Territory; Spectrem Millionaire Investor Confidence Index (SMICI (SM)) Declines 6 Points to -10

CHICAGO, IL--(Marketwire - December 30, 2009) - Spectrem Group (www.spectrem.com) announced today that its Spectrem Affluent Investor Confidence Index (SAICI (SM)) fell 5 points in December to -15, returning to mildly bearish territory.

The decline in the index, which measures the investment confidence and outlook of households with $500,000 or more in investable assets, follows a 5-point gain in November 2009 and ends the year with the affluent index mildly bearish for 11 of 12 months.

Meanwhile, the Spectrem Millionaire Investor Confidence Index (SMICI (SM)) fell 6 points in December to -10, its fifth-straight month in neutral territory.

(IMPORTANT NOTE: Beginning today, the Spectrem indexes will be released on the last Wednesday of each month.)

"Affluent investors and millionaires saw their investment confidence decline in December, with the affluent returning to a mildly bearish stance. While more positive on the economy, rising concerns about the political climate are making wealthy Americans a little less optimistic heading into the New Year," said George H. Walper, Jr., President of Spectrem Group.

In response to an open-ended question about the most serious threat to achieving their financial goals, affluent investors in December cited: the political climate (22%); the economy (18%); unemployment (12%); market conditions (6%); inflation (6%); and health-related issues (4%). Those choosing the political climate rose from 16% in September 2009, the last time this question was asked, while those citing the economy fell from 24%.

Millionaires expressed more concern about the political climate (24%) than the affluent but less about the economy (16%).

Historical Performance


                            July August September October November December
                            ---- ------ --------- ------- -------- --------
Spectrem Affluent Investor
 Confidence Index(SM)        -19    -18       -13     -15      -10      -15
                            ---- ------ --------- ------- -------- --------
Spectrem Millionaire
 Investor Confidence
 Index(SM)                   -16    -10        -5      -7       -4      -10
                            ---- ------ --------- ------- -------- --------

Methodology

The Spectrem Affluent Investor Confidence Index (SAICI (SM)) is based on 250 monthly interviews with the financial decision-makers in households with $500,000 or more in investable assets. The data have a margin of error of plus or minus 6.2 percentage points. The Spectrem Millionaire Investor Confidence Index (SMICI (SM)) is based on a subset of the overall survey group.

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