May 26, 2015 Affluent Investor Facts: Spectrem Millionaire and Affluent Index - May 2015
Spectrem’s Millionaire Investor Confidence Index rose 5 points in May to a level of 15. The highest level this index ever reached was 25 in March and April of 2004 before the recession. But this is a fairly high reading and one point higher than a year ago.
At the same time the Affluent Investor Confidence Index, which measures the investment confidence with households of over $500,000 of investable assets, rose 4 points since April to a level of 8. This is actually a point lower than a year ago. It’s interesting to note that Affluent Investors are generally less optimistic than Millionaires and this trend remains true this month.
The Household Outlook was the driver in May, gaining 6.1 points and rising to 29.7, up 3 points from a year ago. The Household Outlook consists of 4 different components, Household Income, which was up 10 points, secondly the Economy, which was up only 2 points and actually dropped for Millionaires. Third, Company Health, which was up 3 points and fourth, Household Assets, which gained 12.8 points in the past month. Both Millionaires and the Affluent posted double digit gains in this category.
So what does this mean for how investors will channel their investments for the next 30 days? Well despite the increase in assets, investors intend o sit on the sidelines for the next month, with their likelihood to invest in Stocks falling to a 4 month low, especially for Millionaires. Perhaps they are worried that the bull market is about to readjust. The biggest gain regarding how to invest this month, the Real Estate Market, posted a 4.4 percent increase in its likelihood to invest.
What stories on the news are impacting their economic outlook? Once again we fall back to the ongoing battle between Congress and the President. International News, however, remains worrisome to a number of investors who are keeping their eyes on the issues regarding Greece but especially the issues in the Middle East.
Overall, investors are somewhat more optimistic and are feeling better with each passing month, but they remain skittish about 2008 because it’s not too far from their minds.
To read more on Spectrem Group's Millionaire Confidence Index, click here