Investment Trends: Affluent Investors to Opt More for Cash in the Coming Month


Since May, Millionaire investors had increasingly indicated they would be retreating to the sidelines rather than invest. But in July, fewer Millionaires reported they would be going this route, according to a monthly investment trends survey conducted by Spectrem Group. “Not invest” dropped 6.5 points to 28.9. This was the biggest drop in six months.

But this increased investment optimism was counterbalanced by a jittery non-Millionaire investor, who indicated they would be retreating to the sidelines in numbers not seen since December 2013.  “Not invest” among this group jumped 12.6 points to 51.56.

In response to the investment trends question, “How will you invest in the coming month,” “Not invest” among surveyed Affluent investor overall gained 2.8 points to 40, a five-month high. Year-to-year, “Not invest” is up 5.8 points.

For those who do plan to invest, Stock Mutual Funds is the vehicle of choice (33.60 points, down slightly from last month), followed by Stocks (30 points, a decrease of 6.40 points). Intention to invest in Cash, however, gained 4.40 points to 20.40, a gain of 6 points. Bond Mutual Funds increased 3.2 points to 16, a four-month high, while Real Estate ticked upward 1.2 points to 10.

Bonds dipped .08 of a percentage point to 6.80, a three-month low.

Spectrem Group breaks down Affluent investment trends by Millionaire and non-Millionaire households. When asked how they intend to invest in the coming month, Millionaires indicated they will most likely invest in Stock Mutual Funds (44.5 points, a six-month high and a gain of 6.7 points from the previous month), followed by Stocks, 34.4 points, a decrease of 7.3 points and a three-month low.

Cash gained 10.8 points to 25, another six-month high. Bond Mutual Funds, too, spiked 7.7 points to 21.9, a 12-month high. Real Estate gained 3.8 points to 14.8, a 16-month high, while Bonds were unchanged from last month at 10.2 points.

Among non-Millionaires who intend to invest in the coming month, Stocks are the investment vehicles of choice, although this category decreased 5.5 points to 25.4, a three-month low. Stock Mutual Funds plummeted 11.2 points to 22.1, a seven-month low. Intention to invest in Cash dipped 2.3 points to 15.6, another three-month low.

Bond Mutual Funds (9.8 points) and Real Estate (4.9 points) dipped 1.5 points and 1.6 points, respectively. Bonds ticked downward 1.6 points to 3.3, a six-month low.