For the first time in three months, there was a decline in the Affluent investors who, when asked how they would invest in the coming month, indicated they would hold on the sidelines, according to Spectrem Group’s monthly investment preferences survey.
“Not invest” dropped 10 points in December to 30.80, a 15-month low. Year-to-year, “Not invest” is down 18.01 points.
Meanwhile, intention to invest in Stock Mutual Funds gained 11.60 points to 42.40, an 11-month high, and a reflection of Affluent investors’ preference for an investment vehicle that offers diversification. Stocks gained 3.60 points to 33.20, a three-month high. Intention to invest in Cash productions ticked upward, gaining 2.40 points to 20.40.
Bond Mutual Funds was basically unchanged from November, gaining .40 of a point to 12.80, while Bonds gained 2.80 points to 8.40, a seven-month high. Real Estate gained .80 of a point to 6.80, a three-month high.
Spectrem Group breaks down Affluent investment preferences by Millionaire and non-Millionaire households. Millionaires are less likely than their non-Millionaire counterparts to intend to sit on the sidelines in the coming month. “Not invest” among Millionaire investors dropped 4.1 points to 27.1, an eight-month low. This is an indicaton of their more confident investment mindset as well as an indication of their confidence in their financial knowledge.
MIllionaire respondents' Intention to invest in Stock Mutual Funds gained 9.8 points to 43.4, a five-month high, while Stocks gained 5 points to 42.6, an 11-month high. Investment in Cash edged up 3.3 points to 23.3, while Bond Mutual Funds gained 4.3 points to 17.1, a three-month high.
Intention by Millionaires to invest in Bonds gained 5.2 points to 11.6, a seven-month high, while Real Estate ticked downward 1 point to 7.
Non-Millionaire investors, generally more cautious investors, also expressed an increased confidence in the market and willingness to come off the sidelines in the coming month. “Not invest” dropped 15.7 points to 34.7, an 18-month low.
Intention among these investors to invest in Stock Mutual Funds jumped 13.3 points in December to 41.3, a 16-month high. Stocks gained 1.5 points to 23.1. Intentions among non-Millionaires to invest in Cash in the coming month edged upward 1.4 points to 17.4.
Non-Millionaires intend to back away from Bond Mutual Funds (down 3.7 points to 8.3). Real Estate gained 2.6 points to 6.6, a three-month high, while Bonds was basically unchanged at 5.