When asked to select one factor that influences your life, it is very difficult to whittle your choices down to one.
But that is what Spectrem requires of investors in their monthly Investor confidence Index survey when they ask one open-ended question each month on a topic of immediate attention. In February, the question Spectrem asked was “What is the story in the news most affecting your economic outlook?”
Among all investors, the answer was “political environment”, and it is difficult to argue against that choice. But retired investors preferred a different answer, and disagreed with working investors to a large degree.
Thirty-seven percent of retired investors responded that “international problems” were the No. 1 story impacting their economic outlook. That compares to 18 percent of working investors who answered that way. Working investors were much more likely to answer “political environment” (44 percent).
That difference needs to be considered by advisors. Rarely do working investors and retired investors disagree on any matter to that degree.
Thirty-four percent of retired investors agreed with the 44 percent of working investors that the political environment is the No. 1 problem.
There were very few answers different from the two most popular. Six percent of retired investors said “interest rate increases” were the No. 1 story in the news for them, while 5 percent of working investors said the economy and unemployment were the No. 1 story.
Questions in the Spectrem study are asked on a rotating three-month basis, but for the past year, international problems have been the most often cited problem, reaching as high as 34 percent among all investors back in May of 2018. This month was the first time since February of 2018 that international problems was Not the No .1 overall answer. For February 2019, “political environment" took the top spot with 38 percent of all investors selecting that choice.
Spectrem’s Investor Confidence Index indicated that retired investors appreciated the way the economy was moving in February. The Millionaire index among retired investors climbed from -10 to 0, and the Affluent index moved up from -11 to -2. But all index investment factors, including stock and stock mutual fund investing, went up from January to February.
©2019 Spectrem Group