America’s Millionaire professionals, such as doctors, lawyers and accountants, are worried; more concerned about a variety of issues than they were last year, our wealth market research finds.
This, in part, may account for a generally less optimistic view of their financial situation than their occupational counterparts. Millionaire Investor 2015: Financial Behaviors and the Investor’s Mindset, which examines households with a net worth between $1 million and $5 million (not including primary residence) finds a decline in confidence among these households since last year that their personal financial situation will be stronger in a year. In 2014, two-thirds of Millionaire professionals expected to be better off financially next year. One year later, only just over half (54 percent) share this attitude. At the same time, at least two-thirds of senior corporate executives, business owners and managers to expect their households will be financially stronger next year.
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What national issues are most on the minds of Millionaire professionals that may be impacting their household outlook? Primarily it is the political environment, our research finds. The highest percentage of these households (84 percent) cites this as a national concern compared with 80 percent in 2014.
A near-equal percentage (82 percent) cites stock market performance as a primary national concern, up from 70 percent last year. Market volatility has heightened dramatically in the past two months after an unprecedentedly calm first six months when the Dow Jones industrial average was never up or down more than 3.5 percent. Then came August and concerns about a slowdown in China’s economy, the world’s second biggest, as well as speculation over when the Federal Reserve would raise interest rates and other issues.
Millionaire professionals express more concern about stock market performance than their occupational counterparts (82 percent vs. 77 percent of senior corporate executives, 67 percent of managers and 68 percent of business owners).
Another heightened concern of Millionaire professionals is the national debt (70 percent, basically unchanged from 2014), currently at $18 trillion.
Areas in which there has been a sharp increase among Millionaire professionals over last year include an increase in interest rates (53 percent vs. 41 percent in 2014) and inflation (59 percent vs. 66 percent).