SOURCE: Spectrem Group

January 27, 2010 10:32 ET

Spectrem Millionaire Investor Confidence Index (SMICI (SM)) Rises 1 Point in January to -9

Remains in Neutral Territory for Sixth-Straight Month; Spectrem Affluent Investor Confidence Index (SAICI (SM)) Up 2 Points to -13

CHICAGO, IL--(Marketwire - January 27, 2010) - Spectrem Group (www.spectrem.com) announced today that its Spectrem Millionaire Investor Confidence Index (SMICI (SM)) advanced 1 point in January to -9.

This represents the millionaire index's sixth-straight neutral reading and follows a 6-point decline in December.

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 2 points in January to -13. This mildly bearish reading follows a 5-point decline in December 2009.

"The nation's wealthiest investors saw their investment confidence improve modestly in January, as millionaires retained their neutral stance and the broader affluent population remained mildly bearish. With concerns about the economy and stock market still top-of-mind, these investors have begun the New Year with the same cautious mindset they demonstrated throughout 2009," 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 January cited: stock market conditions (22%); the economic environment (20%); retirement (8%); household cash flow (7%); the political climate (4%); and household income (4%). Those choosing stock market conditions fell from 27% in October 2009, the last time this question was asked, while those choosing the economic environment fell from 22%.

Millionaires expressed more concern than the affluent about both stock market conditions (27%) and the economic environment (21%).

Historical Performance

                    August  September  October  November  December  January
Spectrem Affluent
 Investor Confidence
 Index(SM)           -18       -13       -15      -10        -15      -13
Spectrem Millionaire
 Investor Confidence
 Index(SM)           -10        -5        -7       -4        -10       -9

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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