CHICAGO, Dec. 1, 2016 – A record-setting post-election market surge and increased confidence in the U.S. economy helped lift the Spectrem Affluent Investor Confidence Index (SAICI®) and the Spectrem Millionaire Investor Confidence Index (SMICI®) in November, Spectrem Group reported today in its High Net Worth Insights newsletter. The November SAICI and the SMICI each gained five points from the previous month to 8 and 14, respectively. It is the highest totals for the indices since November 2015 (SMICI) and August 2015 (SMICI).
Since 2004, the monthly Spectrem Affluent Investor Confidence indices have tracked changes in investment sentiment among the 16.3MM 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 November 16-21.
Following months of uncertainty surrounding the outcome of the U.S. Presidential election, investors reported increased positivity about the outlook for the U.S. economy, with just one in three (32.8 percent) respondents indicating they intend to stay on the investment sideline in the coming month. Interestingly, while the election is behind us, the political environment continues to be the most influential factor cited by respondents as driving investor sentiment, with fully 83 percent of respondents identifying it as the factor most affecting their financial future.
One of the drivers of the Spectrem Investor Confidence indices is the Spectrem Affluent Household Outlook, a monthly measure of four financial factors that impact Affluent investors’ daily lives. The November Spectrem Affluent Household Outlook increased almost 12 points in November, reaching a 16-month high. Confidence in the economy also increased to its highest level since July 2015. The Spectrem Affluent Household Outlook is up two points from the same period last year.
“With U.S. markets reaching uncharted territory following the election, Affluent investors are indicating a cautiously-optimistic mindset,” said Spectrem Group President George H. Walper, Jr. “Millionaires, especially, are indicating that they will increase their exposure to investing in the coming month rather than hold on the investment sidelines. This is consistent with historic trends in our research, as Millionaire investors generally have a more optimistic outlook than non-Millionaires.”
Charts, including a deeper analysis of the Index and its methodology are available upon request.
Additional insights include:
· November Spectrem Investor Confidence Indices Reach 2016 Highs on Post-Election Market Surge and Household Outlook
Spectrem Affluent Investor Confidence Index®
Spectrem Millionaire Investor Confidence Index®
Index range: -31 to -51, Bearish; -11 to -30, Mildly Bearish; 10 to -10, Neutral; 11 to 30, Mildly Bullish; 31 to 51, Bullish.
About Spectrem Group: Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.