Investors are past their concern over taxes. They have moved their attention to the stock market, as it maintains its elevated level while bouncing back and forth between positive and negative results.
As part of Spectrem’s monthly Confidence Index report, investors in February were asked “What story in the news most affects your economic outlook?” The last time investors were asked that question in the Spectrem report (November of 2017), 42 percent of investors said “taxes.”
The concern over what would happen with taxes has been quelled by the new tax laws promoted by President Donald Trump. So, investors have moved on, and 21 percent say “stock market conditions” are the news story most affecting their economic outlook.
Responses were more spread out in the February survey than in the November survey. In February, 17 percent said the top story in the news related to the economy was “the political environment” and 17 percent were stuck on “taxes.”
“Interest rates increase’’ got 7 percent of the vote.
From a historical perspective, politics were all that mattered in November of 2016, when 83 percent of all investors chose the political environment to be the No. 1 story affecting economic outlook.
There was very little difference in responses between investors with a $1 million in investable assets and those with $500,000 or more in investable assets. However, the less wealthy segment was more likely to consider taxes to be the No. 1 story.
There was also very little difference in response between working and retired investors, although the retired investors were slightly more likely to believe taxes were the top story at the time, and working investors rated the political environment slightly more than retired investors did.
©2018 Spectrem Group