The stock market continued to climb through September, effectively maintaining the 10-year bull market that followed the Great Recession and led to a rebound that sent the market higher than it has ever been.

But affluent investors seemed to have some idea that the stock market could not maintain the record climb it has been on in recent months. 

As part of its monthly Confidence Index, Spectrem in September asked investors a single question reflecting current events or investment strategies. The question was “What Is the most serious threat to achieving your household’s financial goals at this time?” and the most popular answer was “market conditions”.

When the question was asked, market conditions were good. In fact, the Dow Jones Industrial Average reached a new all-time high during the period of time the investors were being asked the survey question.

But 17 percent of investors considered market conditions to be the most serious threat to their household financial picture. That suggests investors are not certain the pinnacle upon which the Dow Jones numbers sit is a stable benchmark.

In fact, Millionaires were more likely to say market conditions was the greatest problem, with 18 percent of those with $1 million in investable assets choosing that selection. The response reached 19 percent among investors who are retired.

The question is asked every three months, and this is the first time in two years that market conditions has been considered a greater threat by percentage than political conditions, which came in as the selection among 16 percent of all investors in September. In past surveys, political conditions have been the No. 1 concern for as many as 30 percent of all investors.

The economy received the nod in September from 14 percent of all investors, which again seems to indicate that investors believe there is going to be a downturn soon. Based on employment numbers, the economy is humming along on continues to improve during President Donald Trump’s term in office.

Market conditions was the No. 1 answer for 12 percent of investors in June, the last time the question was asked. In that survey, political climate was the No. 1 response among 24 percent of investors. The change in three months indicates just how much market conditions are stressing investors, because the tumultuous political climate in the United States has not changed much in the past three months.

 

 

©2018 Spectrem Group