SOURCE: Spectrem Group

Spectrem Group

October 27, 2010 08:00 ET

Spectrem Millionaire Investor Confidence Index (SMICI(SM)) Reaches Highest Level in Nearly 3 Years

Index Rises 6 Points in October to Zero; Spectrem Affluent Investor Confidence Index (SAICI(SM)) Up 3 Points to -13

CHICAGO, IL--(Marketwire - October 27, 2010) -  Spectrem Group announced today that its Spectrem Millionaire Investor Confidence Index (SMICI(SM)) rose 6 points in October to zero, its highest level in nearly 3 years. 

This advance keeps the index in neutral territory and brings it to the highest level since December 2007, when it stood at 8.

Meanwhile, the Spectrem Affluent Investor Confidence Index (SAICI(SM)), which measures the investment confidence and outlook of households with $500,000 or more in investable assets, rose 3 points in October to -13, a mildly bearish reading. 

"Millionaires' confidence in the investment environment reached its highest level in almost three years in October. Confidence among the broader affluent population also advanced. While the stock market's October gains clearly contributed to this positive trend, underlying economic fundamentals remain a top concern for America's wealthiest investors," 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 (21%); the economic environment (20%); retirement (10%); household cash flow (10%); the political climate (8%); and household income (2%). Those citing the economy declined from 22% in July 2010, the last time this question was asked, while those citing stock market conditions remained unchanged.

Millionaires were slightly more focused on stock market conditions (22%) and on the economic environment (21%) than the affluent.

Historical Performance

  May June July August September October
 Spectrem Affluent 
 Investor Confidence
 Index(SM)

-5

-12

-16

-20

-16

-13
 Spectrem Millionaire 
 Investor Confidence 
 Index(SM)

-1

-7

-7

-18

-6

0

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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