Spectrem Millionaire Investor Confidence Index (SMICI®) Falls to 16-Month Low in June


The Spectrem Millionaire Investor Confidence Index (SMICI®) fell 9 points in June to 6, a 16-month low for this monthly measure. The Spectrem Affluent Investor Confidence Index (SAICI®) dipped 2 points to 6.

The indices, compiled by Spectrem Group, a market research and consulting firm specializing in the affluent and retirement markets, measure the investment confidence and outlook of the 16MM households in America with more than $500,000 of investable assets (SAICI), and those with $1MM or more (SMICI).

This is the first time since February 2010 that both indexes were at the same level. Previously, they were the same only two other times in the indices 11-year history, November 2008 and June 2009.

The June SMICI is down 10 points over last year, while the SAICI is down five.

While there were several encouraging economic reports released in June, it was a tumultuous month, with the tragic and unnerving massacre of black parishioners in South Carolina, which triggered a divisive debate over the Confederate flag, which continues to fly over the state capitol. The political climate became stormier with the addition to the 2016 presidential race of six Republican candidates.

On the economic front, global investors have been shaken by Greece’s disastrous financial situation, which ended on Tuesday with the expired bailout and the country unable to repay its debt, In this country, Millionaire investors especially refocused their attention on speculating when the Federal Reserve will raise interests, and what the impact to the economy will be when that happens, possibly in September.

Affluent investors cite market conditions, the economy, and the political climate as the most serious threats to achieving their financial goals at this time.

When asked how they intend to invest in the coming month, these increasingly cautious investors indicated they would be holding on the sidelines. 

These factors helped drive the June decrease in the Affluent investor confidence indices.