Political Climate Recedes as Investment Planning Factor




When asked about the one factor that is most impacting their current investment plans, the highest percentage of Affluent investors (30 percent) cited Stock Market Conditions.  Of those surveyed who are Millionaires, the percentage was slightly higher (32 percent). This is on par with the response in April when this question was last asked.

Nine percent of Affluent investors surveyed by Spectrem Group indicated that the Economic Environment is the one factor most affecting their current investment plans. This is up slightly from April.

The stock market had an uneven first half. Among the events that have rattled investors include ISIS and ISIS-inspired attacks abroad and in America, the Greek debt crisis, America’s prolonged negotiations on a controversial nuclear agreement with Iran, a stock bubble in China, and speculation over when the Federal Reserve would raise interest rates.

The Dow Jones Industrial Average fell 1.4 percent through the first six months of the year, the first time in five years that the index lost ground in that period. The S&P 500 ended the first half with a gain of 0.2 percent, also the worst showing since 2010.

The second half has begun with the United States, the United Kingdom, China, Russia and Germany, along with the European Union signing the nuclear deal with Iran that its proponents state will prevent Iran from acquiring a nuclear weapon. Also this month, the Eurozone offered Greece a new $90 billion three-year bailout that would secure its place in the euro in exchange for Greece enacting austere economic reforms. The talks between Greece and its international creditors continue.

Retirement is another key issue being watched by Affluent investors. Eighteen percent indicated it is the key factor affecting their current investment plans. This, too, is basically unchanged from April, but up from 13 percent at the beginning of the year.

Affluent investors indicate they are paying scant attention to the political climate, which will likely change as the presidential race unfolds in earnest and the vast field of candidates is narrowed. 


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