Millionaires are likely to have a more positive outlook on their finances and investments than non-Millionaires, but there are occasions when factors improve more for those in the lower wealth segment than for those in the upper brackets.
The Spectrem Household Outlook, which is designed to measure an investor’s optimism about four financial components in their daily lives, came in at 30.20 overall in September, a tiny 2-point increase from the previous month. But the Outlook has been on the rise for three months straight and is at a level not seen since January, when it hit 39.90.
But the overall Outlook is a balance of the Outlook of Millionaires with $1 million in investable assets and those investors with less than $1 million in investable assets. In September, the Outlook among non-Millionaires rose to 27.10, the third consecutive month of increases, Meanwhile, the Outlook among Millionaires fell to 33.02, which still registers as the third-highest Outlook for 2018.
So, in general, the Outlook among investors is positive.
Among the four components which make up the Outlook, both Household Income and Company Health saw increases while Household Assets remained steady and the Economy dropped among both Millionaires and non-Millionaires.
Here is a look at the outlook regarding each component:
18.40, down almost 5 points from 23.20 in August
- In August, the response about the Economy was overwhelmingly positive, and the Outlook number jumped 15 points. It is not unexpected to see the Outlook fall in September. Both Millionaires and non-Millionaires reported a decreased Outlook over the Economy, but both numbers remain relatively high.
- There were segments of investors that reported an improved Outlook on the Economy, although both increases were slight. Male investors and Republicans both turned in improved Outlooks on the Economy in September.
- To give an indication of how investors perceive conditions based on political viewpoints, the Outlook for the Economy among Republicans is 56.00 and among Democrats it is -30.77, almost a 90-point difference. Investors who claim to be Independents balance between those two levels, with an Outlook at 12.35 (down from last month).
52.80, identical to the number from August
- This is a perception of the value in assets, and as such the Outlook number indicates that conditions remain stable if not improving.
- Non-Millionaires reported an 8-point improvement in their Household Assets Outlook while Millionaires reported an 8-point decrease. There was also an increase among retired investors and a decrease among those still working, an increase among males and a tiny decrease among females.
- Oddly, investors who vote Republican reported the biggest drop in Household Asset Outlook, from 61.62 to 5.
29.60, an 8-point increase from 21.60 in August
- In May, the Outlook for Household Income among Millionaires was 17.37 and among non-Millionaires it was 20.48. In September, the Millionaire Outlook for Household Income rose to 30.53 and among non-Millionaires it got to 28.57. There has been a general improvement in income Outlook over the past four months.
- All segments reported an increase in Outlook regarding Household Income. This may be a reflection that the tax cuts from January are finally being recorded in paychecks among all levels of investors.
20.00, up from 13.60 in August
- The Outlook for Company Health is at its highest level since January, and might also be a reflection of tax cuts and the health of the overall economy. However, the continuing battles over tariffs will have an effect on individual corporations based on company types and products produced.
- The only segment not reporting an improvement in Company Health was Millionaires, whose Outlook was stable from August. Among non-Millionaires, the Outlook rose almost 14 points to 18.49.
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