The stock market continues to rise, and the climb out of the depths of the 2008 recession continues apace. Despite the controversial result of the 2016 presidential election, there has been mostly positive news from the American economy.
When there is a positive wave to ride, investors like to ride it. That explains the results of Spectrem’s monthly question to investors about investment factors, trends and behaviors.
Asked “What is the most significant change or action you plan to take over the next 12 months to improve your financial well-being?” 29 percent of all investors with $500,000 of investable assets said they plan no changes. That is an indication that household economics and investment performances are going well and require no immediate change to improve financial fortunes.
“Let it ride!” wrote one investor to the open-ended question regarding investment intentions.
Among investors with $1 million or more in investable assets, only 22 percent said they plan no changes for the future.
The next most-often cited response was to alter investment strategies. This could include changing portfolio products, being more aggressive, being less aggressive, paying more attention to investment trends, or altering advisor usage. Twenty-two percent of all investors made that selection, while 25 percent of Millionaires with a net worth over $1 million did so.
The next most popular selection was to purchase new products, chosen by 9 percent of investors and 12 percent of Millionaires. Investors suggested purchasing annuities, exchange-traded funds, moving to global investing, or investing in real estate.
There were investors with a more simplified plan. Eight percent plan to invest more, 8 percent plan to pay down debt, and 6 percent plan to save more. Six percent I said they would change their spending habits.
When conducting its monthly Affluent Investor Index, Spectrem includes questions of specific interest in a three-month rotating basis.
©2017 Spectrem Group