It’s back to the sidelines for Affluent investors, according to Spectrem’s monthly survey of how investors will invest in the coming month.
Following a month that saw the Dow Jones industrial average reach unprecedented highs, the market in December was down seven of 11 trading days, prompting the highest percentage of Affluent investors since December 2008 to say they would, in the short term, not be investing.
Stock Mutual Funds fell six points to 28.95, a four-month low. Intended investment in Stocks fell
9 points to 22.70, another five-year low.
Investment in Cash dipped 1 point to 18.65, a 10-month low, as did Bond Mutual Funds (10.08 points), which also posted its lowest reading since December 2008. Real Estate was down three points to 7.74, while Bonds was basically unchanged since November.
Spectrem’s survey further breaks down Affluent investment preferences by Millionaire and Non-Millionaire Households. While both indicated a retreat to the sidelines, Millionaires intend to be more engaged with the market. Among Millionaires, “Not Invest” gained 6.9 points to 40.1, a five-year high. Among Non-Millionaires, “Not Invest” gained 11.3 points to 57.7, its third highest reading in 2013.
Month-to-month, investment preferences were flat, according to the survey of Millionaire investors. Stock Mutual Funds was basically unchanged at 34.2 points, while Stocks was down 2.9 points to 28.8. Cash investing, too, was basically unchanged from November (23.2 points), while Real Estate dipped 1.4 points to 12.4. Intention to invest in Bond Mutual Funds ticked downward 0.6 points to 11.5, but Bonds gained 3.2 points to 7.1.
Among Non-Millionaires, intention to invest in Stock Mutual Funds dropped 11.2 points to 21.8, tying a level reached in September, while Stock investing fell 14 points to 16.5. Dips in the remaining investment categories were less dramatic. Cash investing dipped 1.5 points to 14, while Bond Mutual Funds ticked downward 0.8 of a point to 8.6. Both Real Estate and Bonds fell just over 3 points to 3.1 and 1.8 respectively.