Spectrem Group looks at Affluent investment option inclinations by Millionaire and Non-Millionaire Households. Non-Millionaires, while reporting they planned to be more invested in the market in the coming month, do show more caution in their investing plans than their Millionaire counterparts. While commitment to invest in Stock Mutual Funds gained 12.5 points to 37.9, a 10-month high, Stocks dipped 2.6 points to 23.7. Further indication of a more cautious investment mindset is seen in the slight gain in Cash, 0.7 of a percentage point, to 17.4. Bond Mutual Funds jumped 8.4 points to 17.4.
Non-Millionaires who indicated they would not invest in the short term dropped 13.4 points to 35.9, a nine-month low. But more non-Millionaires expressed this investment strategy than did Millionaires. “Not invest” among Millionaires dropped five points to 30.7. For the first time in seven months, there was more indication among Millionaires they would invest in Stocks than Stock Mutual Funds. The former gained 10 points to 39.1, while the latter edged upward 1.9 points to 38.8.
There was a retreat among Millionaire investors from Cash (a dip of 1.2 points to 22.3, a one-year Bond Mutual Funds gained 6.3 points to 20.9, while Real Estate increased 6.1 points to 13.3, a four-month high. Bonds gained 3.2 points to 13, a six-month high.
When asked how they intend to invest in the coming month, Affluent investors, buoyed by recent upturns in the stock market, indicated a willingness to reconsider their investment options and move off the sidelines.
Affluent investor response to Spectrem Group’s monthly investment options survey found a sharp drop in those who indicated they would hold off from investing in the short-term. This response dropped 9.23 points to 33.09. Affluent investors have see-sawed over invest/not invest since last December, when Congress ultimately struck a rare bipartisan budget deal. Market volatility in the first months of the New Year has tempered confidence in the economy.
Stock Mutual Funds, Affluent investors’ investment option of choice, gained 7.12 points to 38.41. Stocks gained 4.3 points to 32.10. Conversely, intention to invest in Cash was basically unchanged from February at 20.07, a tick downward of .11 of a percentage point.
Bond Mutual Funds posted the largest month-to-month gain, 7.39 points to 19.27, the highest reading since November 2012. Real Estate gained 5.16 points to 9.04, a four-month high, while Bonds edged upward 2.16 points to 9.41.
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