SOURCE: Spectrem Group

October 26, 2011 08:00 ET

Spectrem Millionaire Investor Confidence Index (SMICI(SM)) Falls to Mildly Bearish for First Time Since August 2010

Drops 3 Points in October to -13, Representing Fifth-Straight Monthly Decline; Spectrem Affluent Investor Confidence Index (SAICI(SM)) Advances 2 Points to -14

CHICAGO, IL--(Marketwire - Oct 26, 2011) - Spectrem Group announced today that its Spectrem Millionaire Investor Confidence Index (SMICI(SM)) declined 3 points in October to -13, falling to a mildly bearish level for the first time since August 2010.

This represents the millionaire index's fifth-consecutive monthly decline and brings the index to the lowest level since it stood at -18 in August 2010, when it was last in mildly bearish territory. The October decline follows a 1-point drop in September 2011 that left the millionaire index at -10, a neutral reading.

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, gained 2 points in October to -14, which is also mildly bearish.

"Millionaires' investment confidence finally succumbed in October to the constant battering of volatile stock-market performance and uncertain economic news and retreated to mildly bearish territory -- its first time at that level since August 2010. The broader affluent population had turned mildly bearish two months earlier. Since both groups were focused primarily on market conditions and the economy in October, it's not terribly surprising that they would reach similar conclusions about the investment environment," said George H. Walper, Jr., President of Spectrem Group.

Additional insights from the indexes are available on the 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 October cited: stock market conditions (33%); the economic environment (22%); retirement (11%); household income (6%); and the political climate (4%). Those citing stock market conditions rose from 24% in July 2011, the last time this question was asked, and those citing the economic environment rose from 21%.

Millionaires were slightly more focused on stock market conditions (34%) than the affluent but less focused on the economic environment (16%).

Historical Performance

May June July August September October
Spectrem Affluent Investor Confidence Index(SM) 2 -9 -9 -18 -16 -14
Spectrem Millionaire Investor Confidence Index(SM) 1 -1 -5 -9 -10 -13

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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