CHICAGO, May 1, 2017 – A strong finish to the first quarter and growing optimism about proposals by the Trump Administration to reform the U.S. tax system lifted sentiment among affluent investors in April to its most bullish level in years, Spectrem Group reported today in its High Net Worth Insights newsletter. The Spectrem Millionaire Investor Confidence Index (SMICI®) rose 10 points from the previous month to 20, while the Spectrem Affluent Investor Confidence Index (SAICI®) gained four points to 10.
The 10-point rise in the SMICI is the largest month-to-month increase since January 2014, propelling the Index to its highest total in more than 3 ½ years. It is just the third time in the last decade that the SMICI has reached 20. Likewise, the SAICI reached its highest reading since July 2015, and is up 6 points from the same period last year.
The monthly Spectrem Investor Confidence indices track changes in investment sentiment among the 16.3MM households in America with more than $500,000 of investable assets (SAICI), and those with $1MM or more (SMICI). This month’s survey was fielded between April 14-19, 2017.
The dramatic increases in April were driven in large part by Millionaires expressing growing interest in reengaging with the market. When surveyed by Spectrem Group as to how they would invest in the coming month, the percentage of Millionaires indicating plans to hold on the investment sidelines stood at a 20-month low. The Spectrem Millionaire Household Outlook, a monthly measure of confidence across four financial factors that impact an investor’s daily life, and a key driver of the Spectrem Investor Confidence Indices, rose in April to a 29-month high.
“The sudden uptick in confidence among Millionaires in April is likely a reaction to a strong first quarter performance in the markets, with the S&P 500 Index and NASDAQ rising nearly 6 percent and 10 percent, respectively, during the period. More than a third of those surveyed indicated that stock market conditions are the one factor that most affects their investment plans right now,” observed Spectrem President George H. Walper, Jr. “This has driven growing optimism in their household outlook and a willingness to move off the investment sidelines in the coming month. Although non-Millionaires are more tempered in their optimism than their Millionaire counterparts, they too were more confident in April than they have been in quite some time.”
Charts, including a deeper analysis of the Index and its methodology are available upon request.
Additional insights include:
Index range: -31 to -51, Bearish; -11 to -30, Mildly Bearish; 10 to -10, Neutral; 11 to 30, Mildly Bullish; 31 to 51, Bullish.
About Spectrem Group: Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.