After taking a month off to consider the effects of the new tax laws, American investors reported an intention to dive back into the stock market to take advantage of the robust climate for investing.
According to both the February Spectrem Millionaire Confidence Index (SMICI®) and the Spectrem Affluent Investors Confidence Index (SAICI®), a higher percentage of investors expressed their intentions to increase their investment outlay in both the stock market and in Stock Mutual Funds in the coming month.
Both the SAICI (an index of investors with $500,000 in investable assets) and the SMICI (for investors with $1 million in investable assets) rose in February, both by 3 points, rebounding from a similar drop in intentions in January, when the effects of the new tax laws were still uncertain.
At the same time, investors who said they were “not investing’’ further in the coming month dropped among both Millionaires and non-Millionaires to levels not seen in more than four years.
Millionaires vs. Non-Millionaires
- Both Millionaires and non-Millionaires recorded an increased interest in Stock and Stock Mutual Fund investing. For non-Millionaires, interest in Stock Mutual Fund investing jumped to the highest single-month increase since December of 2014. For Millionaires, the biggest jump was in Stock investing, from 35.0 to 5.7 percent. The highest such mark since September of 2013, which was the last time Stock investing interest was over 50 percent.
- Both Millionaires and non-Millionaires recorded a drop in those “not investing’’ and for Millionaires, it fell to only 20.1 percent, the lowest such mark since September of 2013.
Men vs. Women
- Apparently, women see new horizons in investing. Both the SAICI and SMICI rose among female investors in February, and the SMICI went from 3 to 19, reaching the highest level among female investors July of 2015.
- The men, on the other hand, actually reported a lower SMICI while increasing their interest in all investing options, including Stock investing, which saw a 13 percent increase.
- The percentage of female investors expressing an interest in greater investment in Stock Mutual Funds went from 27.2 percent to 39.8 percent, and those not investing fell from 41.3 percent to 33 percent.
- The males not investing fell from 33.5 percent to 25.3 percent, the lowest percentage seen among males in the past year.
Republican vs. Democrat vs. Independent
- This comparison is simple: Republicans see sunshine and rainbows and Democrats see doom and gloom.
- Republican investors planned to increase investment in Stock, Stock Mutual Fund, Individual Bond and Real Estate investing, and dropped their percentage of those not investing to 20.45 percent. While Democratic investors also planned to increase their investments in the same categories, their overall SMICI fell from 9 to 3.
- The Republican SAICI and SMICI both rose demonstrably, from 13 to 24 in the SAICI and from 11 to 31 in the SMICI.
Working vs. Retired
- Both working and retired investors decided to take advantage of the current investing climate in February, expressing greater interest in Stock, Stock Mutual Fund and Individual Bond investing. Among working investors, those not increasing their investment amounts in February fell to 14.1 percent, one of the lowest percentages in the history of the SAICI. By comparison, the retired investors not increasing investment was at 43.7 percent, a decrease from January but obviously much higher than the working investors.
- The SAICI and SMICI both improved among retired investors. Among working investors, the SAICI remained unchanged and the SMICI improved only 3 points.
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