Despite increasing confidence in the current economic situation, affluent investors with at least $500,000 in assets said they are holding back a little when it comes to investing, according to the latest survey by Spectrem Group.
In an index indicating confidence in the financial factors that impact their daily lives, affluent investors were at their most confident since April 2007. Yet they also indicated they would hold off on additional investments in the stock market, perhaps the result of market volatility in the third-quarter, according to Spectrem.
Politics weigh heavily
The majority of affluent investors -- 85 percent -- say their top concern is not actually stock market performance, but the political environment.
That's not a shock, since the latest survey was conducted in November and the weeks following the Nov. 4 midterm elections were filled with uncertainties about the working relationship between the president and the newly elected Republican-led Congress.
Other economic concerns that only barely registered with the rich included international problems, the stock market, unemployment and health care.
The more assets, the more likely to invest
Spectrem separates affluent investors -- those with $500,000 or more -- from millionaires and found that millionaires are more likely to invest in the stock market, while the merely affluent tend to be feeling more cautious.
Both groups are staying on the sidelines when it comes to all types of investments -- individual stocks, mutual funds, bonds, cash and real estate. But while the affluent are more likely to invest in funds if they do invest, millionaires favor individual stocks.
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