The new high in concern about the political climate as it relates to how serious a threat Affluent investors consider it to be in achieving their household's financial goals indicates that what happens in Washington doesn’t stay in Washington, A tumultuous month for the Donald Trump administration has an unprecedented percentage of Affluent investors concerned about whether the dysfunction in the District of Columbia will impact their financial situation.
Thirty percent of Affluent investors surveyed in March by Spectrem Group cited the political climate as the most serious threat to achieving their household’s financial goals. Fifteen percent said market conditions, while less than 10 percent cited the economy (9 percent), inflation (8 percent) and international developments (3 percent).
Thirty percent is the highest reading on this question in the 13 years that this survey question has been asked. In September 2016, two months prior to the presidential election, concern about the political climate as it was perceived to be the most serious threat to achieving Affluent investor's financial goals reached 26 percent. Prior to September 2016, the highest level of concern about the political climate was in September 2010, when 27 percent reporting having this attitude. This was just prior to the mid-term elections during former President Obama’s first term, when the Tea Party was on the rise. The G.O.P. would go on to capture the House for the party’s best showing in an election since 1938. They also picked up six seats in the Senate, just shy of what they needed to gain control.
On the one hand, the finality of the 2016 election has eased Affluent investors’ concerns about the perceived rancor in Washington, D.C. In February, when asked which stories in the news were having the most impact on their economic outlook, just over half responded, “the political climate.” This was down markedly from December 2016--less than one month after the election—when 83 percent of Affluent investors said that news stories about the political climate were having the most effect on their economic outlook.
The new high in concern about the political climate as it relates to how serious a threat Affluent investors consider it to be in achieving their household's financial goals indicates that what happens in Washington doesn’t stay in Washington,,and that it is affecting the attitudes of investors.
©2017 Spectrem Group