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Spectrem Group announced today that its Spectrem Affluent Investor Index(TM) fell 3 points in March to a level of 10, slipping from mildly bullish to neutral territory and ending a four-month winning streak.
The index, which measures the investment outlook of households with $500,000 or more in investable assets, had posted its fourth-straight gain in February, rising from an all-time low of -6 in October 2005 to within 4 points of its record high of 17. That strong advance had been mirrored by the Spectrem Millionaire Investor Index(TM), which rose from an all-time low in October 2005 to within 2 points of its record high of 25.
Like the affluent index, the millionaire index ended its four-month run in March, declining 4 points to a level of 19. Unlike the affluent index, however, at this level millionaires remain mildly bullish.
"Affluent investors and millionaires alike exhibited a modest decline in investment optimism in March. This pushed affluent investors down to a neutral investment stance, though millionaires remain mildly bullish. The declines ended four-month winning streaks for both indexes that took them from all-time lows in October 2005 to within reach of their record highs. Everyday issues such as the economy, unemployment and health issues are now occupying the minds of both affluent investors and millionaires. Given this information, the big question is whether March's declines represent a pause in a continued advance or a major trend reversal," said George H. Walper, Jr., President of Spectrem Group.
In response to an open-ended question about the biggest threat to their household financial goals, affluent investors cited: the economy (10%), unemployment (10%), health issues (8%), oil and gas prices (4%) and the cost of living (2%). Concern about unemployment rose from 7% in December 2005, the last time this question was asked, and 6% in September 2005.
Similar to the affluent, 10% of millionaires cited unemployment as the greatest threat to their household financial goals. Ranking immediately behind unemployment for millionaires were the economy (9%) and health issues (9%).
Historical Performance - 6 Months
October November December January February March
Spectrem Affluent
Investor Index(TM) -6 4 8 12 13 10
Spectrem Millionaire
Investor Index(TM) 0 13 18 22 23 19
Methodology
The Spectrem Affluent Investor Index(TM) is based on 250, 10-minute telephone interviews each month, giving the data a margin of error of plus or minus 6.2 percentage points. Interviews are conducted with the financial decision-makers in households with $500,000 or more in investable assets. The Spectrem Millionaire Investor Index(TM) is based on a subset of the overall survey group that can vary each month. It is typically drawn from more than 100 monthly interviews.
The Spectrem Affluent Investor Index(TM) and the Spectrem Millionaire Investor Index(TM) are announced at 8 a.m. Eastern time on the first Wednesday of each month.
Please note, the Spectrem Millionaire Investor Index(TM) is the new name for the Spectrem Millionaire Index. The change is effective immediately.
Report Availability
Spectrem Group's monthly report series presenting and analyzing the Spectrem Affluent Investor Index(TM) and all of its components, including the Spectrem Millionaire Investor Index(TM), is available for purchase at http://www.spectrem.com or by contacting Spectrem Group, 641 W. Lake Street, Suite 402, Chicago, IL 60661, (312) 382-8284.
About Spectrem Group
Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets. It integrates proprietary research with expertise in building business, marketing and M&A strategies. Spectrem professionals have held senior management positions at leading global companies. Through a collaborative process, they create and implement practical and profitable strategies that fit the cultures of client firms.
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Source: Spectrem Group
Source: PR Newswire
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