For the foreseeable future, the political climate in the United States is going to play a role in the economic atmosphere of the country.
A populace severely divided by the presidential election in November remains divided today, and the dysfunction of the Congress does not appear to be headed toward an improvement any time soon.
So it is no surprise that when Spectrem Group asked investors in its monthly survey to state the single factor that presents the most serious threat to achieving household financial goals, the Political Climate of the United States is the factor most often noted.
However, there is good news, of a sort.
Twenty-five percent of investors said the nation’s Political Climate presented the most significant threat to their household financial situation, outpolling Market Conditions (17 percent) and The Economy (16 percent). Drawing much fewer responses was Inflation (7 percent) and the International Situation (2 percent).
But when the question was last posed to investors in March of 2017, 30 percent selected Political Climate, indicating there has been a 5 percent decrease in investors who see politics as the main drag on their financial situation. Political Climate has been the overwhelming No. 1 selection since June of 2016, when The Economy and Market Conditions were considered a greater threat to financial success.
There have been very few occasions when one factor has been so evidently the major drag on household success. In the last six years, the only times a single factor garnered 25 percent or more of the selections in the Spectrem survey were September of 2011 when 39 percent of investors chose The Economy, March of 2013 when 26 percent chose the Political Climate, and June of 2104 when 27 percent selected Market Conditions.
There are only slight differences in responses between Millionaire and non-Millionaire investors. Twenty-nine percent of Millionaires said Political Climate was the No. 1 concern, while 25 percent of non-Millionaire investors agreed. Non-Millionaires expressed only a slightly higher concern than Millionaires in terms of The Economy (16 percent to 15 percent) and Inflation (7 percent to 6 percent).
It is telling that the International Situation has been so overwhelmed by political concerns back home. In September of 2015, 11 percent of investors saw international issues as the No. 1 concern, and in September 2012 it earned 14 percent of investor selections. Now it is down to 2 percent despite no real change in international relations between the United States and other countries.
©2017 Spectrem Group