SOURCE: Spectrem Group

August 05, 2009 08:00 ET

Spectrem Millionaire Investor Index (SMII)® Rises 4 Points in July to -16

Reverses Direction After 18-Point Decline in June; Spectrem Affluent Investor Index (SAII)® Adds 1 Point to -19

CHICAGO, IL--(Marketwire - August 5, 2009) - Spectrem Group (www.spectrem.com) announced today that its Spectrem Millionaire Investor Index (SMII)® rose 4 points in July to -16, following a substantial decline the month before.

The advance, which keeps the index in mildly bearish territory, comes on the heels of an 18-point drop in June, which represented the biggest one-month decline since the index's inception in February 2004.

Meanwhile, the Spectrem Affluent Investor Index (SAII)®, which measures the investment outlook of households with $500,000 or more in investable assets, advanced by 1 point in July to -19, also a mildly bearish reading.

"Millionaires and the broader affluent population saw their investment optimism improve modestly in July, signaling continued caution following June's significant declines. Despite recent stock-market gains, the nation's wealthiest investors most likely will remain cautious until concerns such as unemployment and political uncertainty surrounding the healthcare debate have stabilized," 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 July cited: stock market conditions (26%); the economic environment (16%); household cash flow (8%); the political climate (7%); retirement (3%); and household income (2%). Those choosing stock market conditions fell from 30% in April 2009, the last time this question was asked, and those choosing the economy fell from 18%.

Millionaires were slightly more concerned about both stock market conditions (28%) and the economic environment (22%) in July than the affluent.

Historical Performance

                February   March   April   May   June   July
Spectrem
Affluent           -38      -30     -21    -12    -20    -19
Investor Index®

Spectrem
Millionaire        -34      -26     -19     -2    -20    -16
Investor Index®

Methodology

The Spectrem Affluent Investor Index® 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 Index® is based on a subset of the overall survey group.

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