Sunlight increases endorphin levels in humans and increased endorphins improve mental attitude.
With the approach of summer, combined with a rollicking stock market, investors are enjoying a very high level of optimism about the future of the nation’s economic conditions.
Spectrem’s Household Outlook for June recorded an overall increase in the Outlook among all investors as well as notable increases in the four financial components of household finances that determine the overall Outlook. This is especially true among non-Millionaires, who are seeing improved conditions for most of the factors that determine their household financial situation.
The Spectrem Household Outlook measures an investor’s optimism about four financial components in their daily lives, including Household Income, Household Assets, and the Economy. For June, the overall Outlook registered at 25.20, a slight rise from 22.80 in May. The Outlook has been above 20 now for five consecutive months following the dive that occurred when the stock market tanked in December.
The Outlook for the components all rose overall except for the economy, which saw an increase among Millionaires but a deep drop among non-Millionaires. Non-millionaires registered improved Outlook in all components except the economy and Millionaires had improved Outlook for household assets and company health.
Here is a look at the outlook regarding each component:
3.20, down slightly from 3.60 in May
- Until the U.S. and China come to some agreement over trade and tariffs, the Outlook for the economy is going to be on hold for many investors. But job numbers continue to be good, and the hint from the Federal Reserve that interest rates may drop later in the year provide positive input as well.
- Millionaires are buying in, and they improved their Outlook for the economy from 2.21 to 11.81 in June. Non-Millionaires are not convinced, and their Outlook fell for the economy from 5.26 to 5.89. When non-Millionaires reported a positive number for the economy in May, it was only the second time of the year.
- There was a definite demarcation between positive reports from working investors, male investors and Republican investors versus negative reports from retired investors, female investors and Democrats when considering the economy.
52.00, up 3.6 points from 48.40 in May
- The Outlook for household assets is always the highest rating among the four components that make up the overall Outlook, and it rose to over 50 in June for the first time in 2019. Non-Millionaires had a bigger increase in their Outlook for Household Assets from 37.72 to 43.90, while Millionaires reported a 2.5-point increase to 59.84.
- The only segment of investors to report a drop in their Outlook for Household Assets was retired investors, who reported a huge jump in that category in May.
28.00, a slight increase from 25.20 in May
- The Outlook for household income has been on a slight rise throughout 2019 and has reached a level last seen in September. For non-Millionaires, the Outlook for household income doubled from May to June, from 13.16 to 26.02 after a similar drop from April to May. The Household income Outlook actually dropped among Millionaires in June but remains higher than it has been for most of 2019.
- Considering a breakdown by investors segments, Republican investors reported the highest improvement, although it dropped slightly among male investors. Investors who vote Democratic reported their third month of decreased Outlook for Household Income.
17.60, up 3.60 points from 14.00 in May
- Company health has been tied to trade negotiations for the entire 2019 calendar, but among investors the Outlook for company health has been on a slow incline the last six months, and reached a new high for the year in June. All segments reported increased Outlook for Company Health with the exception of investors who vote Republican, who reported a slight decrease from May but nothing significant.
©2019 Spectrem Group