Roughly one-third of Affluent investors consider Stock Market to be the primary factor affecting their investment plans, according to our latest Affluent Investor Confidence Index research. This is down from 35 percent in January. Ten percent consider the Economic Environment to be the primary factor affecting their investment plans. This is down from 13 percent three months ago.
There is an increased focus on Retirement and Household Income in regards to making investment plans. Eighteen percent—up from 16 percent in January—consider the former to be the primary factor, while 10 percent—up from 7 percent in January—consider the latter to be the one factor most affecting their current investment plans.
Our new research indicates that Affluent investors are very good at tuning out distractions and focusing on the economic factors they perceive to be most affecting their current investment plans. Only 4 percent of Affluent respondents said they consider the Political Climate to be the most important factor affecting their investment plans. Tellingly, this is up 2 percent from three months ago when this question was last asked, an indication that the increasingly divisive presidential race is hard to ignore completely (In comparison, 14 percent of Affluent investors said in March that they consider the Political Climate to be the most serious threat to achieving their household’s current financial goals, up from 10 percent in December).
A gender analysis of our research finds that Affluent men and women are equally focused on Stock Market Conditions (32 percent), while men were more likely to state that the Economic Environment is the primary factor affecting their current investment plans (11 percent vs. 7 percent of women).
Women are more likely than men to be considering Household Income and Retirement in making their investment plans (16 percent vs. 7 percent and 22 percent vs. 16 percent, respectively. As for the Political Climate, this is significantly more of a focus for men than it is for women as it relates to making investment plans (7 percent vs. 0 percent of women).
Analyzed by political affiliation, Affluent respondents who identify as Republican are more likely than their Democrat and Independent counterparts to be focused on Stock Market
Conditions in regards to their investment plans (37 percent vs. 31 percent and 27 percent). Those who identify as Independent are more focused on the Economic Environment than those affiliated with the major parties (16 percent vs. 9 percent of Republicans and 4 percent of Democrats). All three are more focused on Retirement and Household Income than they are on the Political Climate.