There is a party going on in America. Hosted by the stock market, the party is one where affluent investors are making all kinds of money from their stock ownership and their investments in corporate America, where profits grow seemingly unabated.
For the most part, investors are noting the opportunities which exist for them. According to Spectrem’s Investor Confidence Index, investors with $1 million in investable assets are increasing their stock market investing, expecting further growth under the GOP-led federal government.
But retired investors are not as positive about the direction the country’s investment outlook is headed. Unlike working investors, retirees are dropping out of the stock market and more are keeping their investment strategies steady rather than increasing investments for the time being.
The Spectrem Millionaire Investor Confidence Index for working investors increased to 22 in October, a move of 4 points. The Spectrem Affluent Investor Confidence Index for investors with $500,000 in investable assets moved up 3 points to 17.
At the same time, those same indices for retired investors dropped, from 17 to 9 among the Millionaire group and from 10 to 2 among the Affluent retired investors.
The most notable indicator of investor enthusiasm in the Spectrem indices is the percentage of investors who are not increasing their investments for the coming month. In October, while the working investors’ percentage of non-participants dropped almost 5 percent to 27.7 percent, the percentage of retired investors not increasing their investments rose to 40.4 percent, which is still well below the 48 percent of non-investors two months ago.
Only 29 percent of retirees planned to increase investment in the stock market, and only 33.3 percent planned to invest in stock market mutual funds, both decreases from the previous month. There was a slight increase in the safety investments of cash and bond mutual fund investing among retirees.
The Spectrem Confidence Indices also include the Household Outlook, a measure of how current financial conditions impact an investor’s attitudes towards matters such as assets, income and the overall economy. While the Outlook rose among the working class, it dropped to 21.27 among retirees (although the Outlook among retirees saw a huge jump in September).
©2017 Spectrem Group