Despite a continued robust market in February, the Spectrem Affluent Investor Confidence indices were flat in comparison with the previous month. The Spectrem Affluent Investor Confidence Index (SAICI®) dipped 1 point to 7, while the Spectrem Millionaire Investor Confidence Index (SMICI®) lost 2 points to 10. But each is up markedly from February 2016. The SAICI is up 10 points and the SMICI is up 8.
One of the drivers of the Spectrem investor confidence indices, the Spectrem Affluent Household Outlook, was also flat for the second consecutive month. The Outlook is a monthly measure of financial factors that impact the daily lives of Affluent investors. But here, too, all the components of the Outlook—household assets, household income, company health and the economy-- are up in comparison with February 2016.
Notable in February was a surge in the Spectrem Non-Millionaire Household Outlook. The Millionaire Household Outlook is generally higher than it is for non-Millionaires, but in February, driven by the highest level of confidence in the economy in two years, non-Millionaires closed the gap to within 2.6 pts., the narrowest margin since October 2016.
“The overall flat performance of the Spectrem investor confidence indices is mirrored in a similar dip in the February Spectrem Affluent Household Outlook,” said Spectrem President George H. Walper, Jr. “But there was a marked decrease from just after the election in Affluent investors who indicated that news stories about the political environment were most affecting their economic outlook, and for the second consecutive month, there was an increased percentage of Affluent investors who expressed they would move off the investment sidelines in the coming month, just not necessarily into equities. Non-Millionaires, more than Millionaires, are feeling Wall Street’s optimism and are indicating a surge of confidence in the long-term prospects of the economy.”
The monthly Spectrem Affluent Investor Confidence indices track changes in investment sentiment among the 16.3MM households in America with more than $500,000 of investable assets (SAICI), and those with $1MM or more (SMICI). This month’s survey was fielded between February 16-22, 2017.
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