Affluent investors polled by Chicago-based consultants Spectrem Group in June shook off their uncertainties about Iraq, inflation and the U.S. presidential election to regain a “mildly bullish” outlook.
Spectrem said Wednesday that its “affluent investor index” climbed to a level of 16 in June, claiming back all of May’s 4-point decline as investors focused on core issues like the economy, market conditions and household income.
The Spectrem affluent investor index measures the investment outlook each month of 250 U.S. households with $500,000 or more in assets to invest.
In Spectrem’s May poll, affluent investors had said the top news events driving their economic outlook were hostilities in Iraq, higher oil and gas prices, and the U.S. presidential election.
These concerns had resulted in wealthy investors’ outlook for the U.S. economy falling in May to the same level as it was in the aftermath of the attacks of Sept. 11, 2001.
However, when asked in June about the factors most affecting investment planning, just 1 percent of respondents cited Iraq and only 3 percent mentioned presidential politics.
Business as usual
“The strong focus of affluent investors and millionaires on the economy in making investment decisions suggests a return to business as usual in June following an unusual period of uncertainty in May,” said George Walper, president of Spectrem Group.
“It is interesting, however, that this focus on the economy and other bread-and-butter issues should come as the presidential election draws closer — perhaps suggesting that traditional voter concerns may begin carrying the day.”
In the June poll, economic conditions were twice as important to affluent investors as any other factor, with 14 percent citing it as the issue most affecting their investment plans.
The index’s measurement of U.S. economic outlook over the next 12 months jumped to 43 in June, after falling to 15 in May, which was the level seen shortly after the attacks of Sept. 11, 2001.
Spectrem’s “millionaire index,” which measures affluent households with assets of $1 million or more to invest, rose to 23 in June from 19 in May.
The millionaires polled were more concerned with low investment returns and interest payments than the broader affluent group, but a bit less worried about household income.
The Spectrem affluent investor index is based on 250, 10-minute telephone interviews each month. The millionaire index is typically drawn from more than 100 monthly interviews.
Spectrem Group is a consulting firm specializing in the affluent and retirement markets.
