SOURCE: Spectrem Group

November 04, 2009 08:00 ET

Spectrem Millionaire Investor Confidence Index (SMICI (SM)) Falls 2 Points in October to -7

First Decline Since June 2009; Spectrem Affluent Investor Confidence Index (SAICI (SM)) Down 2 Points to -15

CHICAGO, IL--(Marketwire - November 4, 2009) - Spectrem Group (www.spectrem.com) announced today that its Spectrem Millionaire Investor Confidence Index (SMICI (SM)) fell 2 points in October to -7, its first decline since June 2009.

Despite the October drop, which follows a 5-point advance in September, the millionaire index remains in neutral territory for a third-straight month.

Meanwhile, the Spectrem Affluent Investor Confidence Index (SAICI (SM)), which measures the investment confidence of households with $500,000 or more in investable assets, also fell by 2 points, to -15. The decline follows three consecutive monthly gains and keeps the index in mildly bearish territory.

"Millionaires and the broader affluent population saw their investment confidence decline slightly in October, ending a run of three consecutive monthly advances that began in July. Despite the erosion, confidence levels remain higher than they've been through most of the economic downturn. Overall, this suggests the nation's wealthiest investors are reacting cautiously to the stock market's October gains and recent signs that the economy may be coming back to life," said George H. Walper, Jr., President of Spectrem Group.

In response to an open-ended question about the one factor most affecting their investment plans, affluent investors in October cited: stock market conditions (27%); the economic environment (22%); the political climate (7%); retirement (6%); household income (4%); and household cash flow (4%).

Millionaires expressed more concern about the stock market (29%) than the affluent, but were slightly less concerned about the economy (20%).

Historical Performance

                May     June    July   August  September October
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Spectrem
Affluent
Investor        -12      -20     -19     -18      -13      -15
Confidence
Index(SM)
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Spectrem
Millionaire
Investor         -2      -20     -16     -10       -5       -7
Confidence
Index(SM)
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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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