The Spectrem Affluent Investor Confidence Index (SAICI®) gained five points in February to 12, a five-month high. The Spectrem Millionaire Investor Confidence Index (SMICI®) gained 3 points to 13, a three-month high.
The indices measure the investment confidence and outlook of households with more than $500,000 of investable assets and more than $1 million of investable assets, respectively. The February SAICI is up 14 points from February 2014, while the SMICI is up eight points.
Several factors are fueling the rise in the indices. February has seen a number of positive economic developments, ranging from a strong jobs report to the Dow Jones topping the 18,000 benchmark again. At the same time, international developments in Greece, the Middle East and Ukraine have some Affluent investors in a cautious frame of mind. The highest percent of these investors surveyed by Spectrem Group indicated that international news stories, along with stories about terrorism and gas prices, are having more of an effect on their economic outlook than news stories about the economy, market conditions and the political environment (see page 3).
One factor driving the increase in the Spectrem indices is a rise in the Spectrem Affluent Household Outlook, a monthly measure of confidence in four financial factors that impact their daily lives. “The Household Outlook is up in February after being stagnant the previous month,” noted George Walper, Jr., president of Spectrem Group. “There is an overall increase in confidence in the economy as well as with household income. This has been fueled in part by lower gas prices, which are were putting more money in people’s pockets and allowing them to rebuild their savings and reduce their debt.” (See page 4)
Another factor impacting the rise in the Spectrem indices is renewed engagement with the market. This month has seen an increase in Affluent investors who indicate they will once again move off the sidelines as the Dow Jones reaches new highs despite uncertainties over volatile international developments as well as the as-ever stormy political climate in