Non-Millionaire Investors Get Their Groove Back as Market Rises
11/25/2013
In a month that saw the Dow reach unprecedented highs (over 16,000), Affluent investors intend to wade back in to the market. When asked how they would be investing in the coming month, fewer Affluent investors said they would sit on the sidelines, according to Spectrem Group’s monthly survey of investment preferences.
“Not invest” fell seven points from the previous month to 39.01,while Stocks gained 6.50 points—the biggest month-to-month increase--to 31.20. Stock Mutual Funds gained three points to 33.61. Real Estate increased 3 points to 10.38, a five-month high. Intention to invest in Bond Mutual Funds dropped 2 points to 10.96, the lowest reading since December 2008, while Cash dipped 1 point to 19.86. Bonds also dipped one point to 4.37, its lowest reading since August 2006.
The last few months have seen any number of events that analysts cautioned could have upended the market rally, including the bitterly partisan debt ceiling imbroglio, the government shutdown and trying to anticipate what the Federal Reserve would do about its stimulus program. Instead, the market has continued to rise, and Non-Millionaire investors, typically more likely than Millionaires to retreat to the sidelines, plan to increase investment in equities. Non-Millionaire intention to invest in Stocks jumped 15.1 points to 30.5, the highest reading since June. Stock Mutual Funds increased 11.1 points to 33, another five-month high.
Those who said they would continue to “Not Invest” dropped 15.5 points to 46.4, a four-month low, while Cash dropped 4.1 points to 15.5, a six-month low. While Real Estate dropped 2.1 points to 6.1, Bond Mutual Funds and Bonds gained 2.5 points and 3.4 points respectively.
Millionaire investors appear to be more wary of the market rally. “Not Invest” gained 2.4 points to 33.2, a three-month high, while Stock Mutual Funds and Stocks dipped 5.3 points and 1.5 points, respectively. Real Estate posted the month’s largest month-to-month gain, 7.3 points, but Cash (7 points), Bond Mutual Funds (-6.4 points) and Bonds (-5.7 points) each posted declines from last month.