CHICAGO, July 5, 2017 – One month after recording the largest decline in investor confidence in its history, the Spectrem Millionaire Investor Confidence Index (SMICI®) bounced back slightly in June, Spectrem reported today in its High Net Worth Insights newsletter. The SMICI, which fell 17 points from April to May, increased three points in June to 6, while the Spectrem Affluent Investor Confidence Index (SAICI®) declined four points to 2, its lowest mark since May of last year.
The monthly Spectrem Investor Confidence indices track changes in investment sentiment among the 17MM households in America with more than $500,000 of investable assets (SAICI), and those with $1MM or more (SMICI). This month’s survey was fielded between June 16-20, 2017.
Despite the gain in investor confidence among Millionaires, 42 percent indicated they are not planning to invest in the coming month, the highest percentage of non-participants since December 2013. The percentage of investors choosing not to invest has climbed steadily since February, when one in three (33.6 percent) investors indicated an intention to stay on the investment sidelines.
Asked to name the factor most likely to stand in the way of achieving their financial goals, a quarter of respondents (25 percent) said the Political Climate in the United States, one of the highest totals in several years among all potential threats to financial success.
“While financial markets and the economy have not been as severely impacted by political dysfunction in Washington, D.C. as some had predicted, there is no question the lack of forward progress on key legislative agenda priorities such as health care and tax reform has reduced confidence among investors,” said Spectrem President George H. Walper, Jr. “A majority of Spectrem Group’s investor confidence measurements, along with the overall outlook, continue to decline, and without a clear path forward, it is likely that they will continue to struggle.”
Charts, including a deeper analysis of the Index and its methodology, are available upon request. Additional insights include: