SOURCE: Spectrem Group

December 29, 2010 08:00 ET

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

Rises 7 Points in December to End Year at 7; Spectrem Affluent Investor Confidence Index (SAICI (SM)) Unchanged at -8

CHICAGO, IL--(Marketwire - December 29, 2010) - Spectrem Group announced today that its Spectrem Millionaire Investor Confidence Index (SMICI(SM)) rose 7 points in December to end the year at 7.

This increase brings the millionaire index to its highest level since December 2007, when it stood at 8, and keeps it 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, remained unchanged at -8, also a neutral reading.

"Millionaires posted a strong increase in investment confidence in December, bringing 2010 to a close at their highest level in 3 years. Meanwhile, the broader affluent population's confidence remained unchanged. With November's midterm elections bringing a shift in the political climate, America's wealthiest investors appear hopeful that their lingering economic concerns will ease as we move forward into the New Year," said George H. Walper, Jr., President of Spectrem Group.

In response to an open-ended question about the most serious threat to achieving their household financial goals, affluent investors in December cited: the economy (24%); the political climate (23%); unemployment (8%); market conditions (7%); inflation (6%); and health-related issues (2%). Those choosing the economy fell from 26% in September 2010, the last time this question was asked, while those citing the political climate declined from 27%.

Millionaires were more focused on the political climate (28%) than the affluent, but were less focused on the economy (22%).

Historical Performance

  July August September October November December
Spectrem Affluent Investor Confidence Index(SM) -16 -20 -16 -13 -8 -8
Spectrem Millionaire Investor Confidence Index(SM) -7 -18 -6 0 0 7

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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