With all the clucking over the mid-term elections ended, investors in November turned to look at the future, and for Millionaires, the future seemed bright.
The Spectrem Household Outlook, which is designed to measure an investor’s optimism about four financial components in their daily lives, rose among Millionaires and fell among non-Millionaires in November. For Millionaires, the Outlook component was 18.10, an improvement over the year’s low of 13.67 one month prior. Millionaires reported an improved Outlook over Household Assets and the Economy, although there was slight drop among Millionaires in the Outlook over Company Health.
Among non-Millionaires, the Outlook fell more than 12 points to 8.84, hitting single digits for the first time in 2018. The only positive report non-Millionaires offered was in Company Health, in contrast to Millionaires.
The overall Outlook for the Economy stayed in negative territory for the second month and dropped slightly from October.
Here is a look at the outlook regarding each component:
(4.80), down 2.40 from (2.40) in October
- While the overall rating for the Economy fell and remained in negative territory for the second month, there was an improvement among Millionaires, which registered a -11.72 for the Economy in October while awaiting mid-term election results. The Outlook among non-Millionaires for the Economy fell to -12.93, hitting negative territory the second time this year among non-Millionaires.
- There was a nearly perfect contrast among Republicans and Democrats in their Outlook for the Economy, with republicans raising their Outlook to 44.76 while Democrats dropped theirs to -65.08, the lowest number of the year. Democrats have only rated their Outlook for the Economy in the positive range once in 2018.
38.40, a drop from 40.80 in October
- The Outlook for Household Assets is always the highest number, but it recorded a loss for the second month of the year. The decrease was caused by an 11-point drop among non-Millionaires, while Millionaires increased their Outlook for Household Assets slightly in November.
- Keep in mind that three months ago, the overall Outlook for Household Assets was at 52.80 and the Millionaire Outlook was at 64.34, both much higher than the ratings for November.
- Among segments, Democrats reported the only positive change, raising their outlook to 38.10, an increase of more than 10 points. Female investors dropped their Outlook for Household Assets by 6 points. Working investors reported a small increase in their Outlook for Household Assets.
15.20, a drop of more than 5 points from 20.80 in October
- As with Household Assets, the decrease in the Outlook for Household Income was driven by Non-Millionaires, who offered an 11-point drop. Millionaires balanced that with a 6-point increase. Despite the increase from October, Household Income sits at the second-lowest rating of the year.
- Male investors reported a 7-point decrease in their Outlook over Household Income in November, to 15.73, the lowest level of the year. Democrats actually reported a slight increase in their Outlook for Household Income, while Republican investors kept their Outlook steady from October.
6.40, a drop of 4.4 points from 10.80 in October
- This component, which does not fluctuate much month over month, fell for the second consecutive month and is in single digits for the first time in 2018. There was a drop of more than 6 points among non-Millionaires and a decrease of 2 points for Millionaires.
- That decrease was reported among all segments of investors, with the largest reaction coming from Republican investors, who dropped their Outlook for Company Health more than 30 points to 18.10 from 51.49.
©2018 Spectrem Group