SOURCE: Spectrem Group

July 27, 2011 08:00 ET

Spectrem Millionaire Investor Confidence Index (SMICI(SM)) Falls to Lowest Level in Nearly a Year

Declines 4 Points in July to -5; Spectrem Affluent Investor Confidence Index (SAICI(SM)) Unchanged at -9

CHICAGO, IL--(Marketwire - Jul 27, 2011) - Spectrem Group announced today that its Spectrem Millionaire Investor Confidence Index (SMICI(SM)) fell 4 points in July to -5, its lowest level in nearly a year.

The decline, which follows a 2-point drop in June, brings the millionaire index to its lowest level since September 2010, when it stood at -6. The index remains in neutral territory.

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, was unchanged in July at -9, also a neutral reading.

"U.S. millionaires saw their confidence fall again in July, dropping to the lowest level in nearly a year, while the broader affluent population was unchanged following a sizable June decline. The political debate this month over efforts to raise the nation's debt ceiling no doubt exacerbated the concerns of millionaires and affluent investors alike, as both groups focused much of their attention on stock market conditions and the economy," 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 July cited: stock market conditions (24%); the economic environment (21%); the political climate (13%); retirement (12%) and household income (8%). Those citing stock market conditions rose from 22% in April 2011, the last time this question was asked, while those citing the economic environment fell from 24%.

Millionaires were slightly more focused on the stock market conditions (25%) than the affluent but less focused on the economic environment (19%).

Historical Performance

February March April May June July
Spectrem Affluent Investor Confidence Index(SM)

4


1


-7


2


-9


-9
Spectrem Millionaire Investor Confidence Index(SM)

17


8


-1


1


-1


-5

Methodology

The Spectrem Affluent Investor Confidence Index (SAICI(SM)) is based on 250 monthly email 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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