SOURCE: Spectrem Group

August 25, 2010 08:00 ET

Spectrem Millionaire Investor Confidence Index (SMICI(SM)) Posts Largest Decline in Over a Year

Falls 11 Points in August to -18; Spectrem Affluent Investor Confidence Index (SAICI(SM)) Down 4 Points to -20

CHICAGO, IL--(Marketwire - August 25, 2010) -  Spectrem Group (www.spectrem.com) announced today that the Spectrem Millionaire Investor Confidence Index (SMICI ℠) fell 11 points in August to -18. 

This decline, its biggest since June 2009, brings the index to its lowest level since that date, when it fell a record 18 points to -20. It also returns the index to mildly bearish territory after 12 straight months in neutral.

Meanwhile, the Spectrem Affluent Investor Confidence Index (SAICI ℠), which measures the investment confidence and outlook of households with $500,000 or more in investable assets, fell 4 points in August to a mildly bearish -20, its third-straight monthly decline.

"Millionaires posted their biggest decline in investment confidence in more than a year in August, while affluent investors saw their confidence decline for a third-straight month. The millionaires' decline is particularly troubling since it suggests millionaires, typically more sophisticated than the broader affluent population, are reverting to a bearish frame of mind," said George H. Walper, Jr., President of Spectrem Group.

In response to an open-ended question about the news story most affecting their economic outlook, affluent investors in August cited: the political environment (18%); unemployment (16%); the economy (11%); stock market conditions (8%); health care reform (5%); the oil spill (2%); and European problems (1%). Those citing the political environment rose from 13% in May 2010, the last time this question was asked, and those citing unemployment rose from 6%. 

Millionaires were more focused on the political environment (25%) than the affluent, but less focused on unemployment (13%).

Historical Performance

  March April May June July August
Spectrem Affluent Investor Confidence Index(SM) -12 -9 -5 -12 -16 -20
Spectrem Millionaire Investor Confidence Index(SM) -6 -1 -1 -7 -7 -18

Methodology

The Spectrem Affluent Investor Confidence Index (SAICI ℠) 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 ℠) is based on a subset of the overall survey group.

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