SOURCE: Spectrem Group

April 27, 2011 08:00 ET

Spectrem Millionaire Investor Confidence Index (SMICI(SM)) Falls to Lowest Level in 7 Months

Drops 9 Points in April to -1; Spectrem Affluent Investor Confidence Index (SAICI(SM)) Down 8 Points to -7

CHICAGO, IL--(Marketwire - Apr 27, 2011) - Spectrem Group announced today that its Spectrem Millionaire Investor Confidence Index (SMICI(SM)) dropped 9 points in April to -1, a neutral reading and the index's lowest level in 7 months.

This marks the second-consecutive decline for the millionaire index, following an identical 9-point drop in March 2011, and brings the index to its lowest level since September 2010, when it stood at -6.

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, fell 8 points in April to -7, also a neutral reading.

"Millionaires' investment confidence fell for a second-straight month in April, suggesting some level of concern about the strength of the economic recovery. This decline brought millionaires' confidence to its lowest level since September 2010, as optimism among the broader affluent population also fell. Millionaires and the affluent both expressed concern about the economy and stock market conditions in April, with retirement also ranking as a key factor affecting their investment plans," said George H. Walper, Jr., President of Spectrem Group.

Additional insights from the indexes are available on Spectrem's newly launched Spectrem's Millionaire Corner website (www.millionairecorner.com).

These include:

In response to an open-ended question about the one factor most affecting their investment plans, affluent investors in April cited: the economic environment (24%); stock market conditions (22%); household income (12%); retirement (7%); housing and real estate (4%); and the political climate (1%). Those citing the economic environment rose from 22% in January 2011, the last time this question was asked, while those citing stock market conditions fell from 25%.

Millionaires were more focused on the stock market conditions (25%) than the affluent but slightly less focused on the economic environment (22%).

Historical Performance

NovemberDecemberJanuaryFebruaryMarchApril
Spectrem Affluent Investor Confidence Index(SM)

-8


-8


-3


4


1


-7
Spectrem Millionaire Investor Confidence Index(SM)

0


7


2


17


8


-1

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.

About Spectrem's Millionaire Corner
Spectrem's Millionaire Corner website (www.millionairecorner.com) is a powerful source for up-to-the-minute news and information for investors, about investors designed to fuel financial growth. It incorporates Spectrem Group research as well as outside information. In the future, the site will offer financial advisor referrals.

About Spectrem Group
Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets, integrating proprietary research with expertise in building business, marketing and M&A strategies. Its professionals have held senior management positions at leading global companies.

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