The index measures the investment confidence and outlook of households with $500,000 or more in investable assets. The 11-point drop took the index to -9, its lowest level since October 2010, when it stood at –13. Spectrem also keeps track of millionaire investors with the Spectrem Millionaire Investor Confidence Index, which fell 2 points in June to –1.
It’s been a volatile year for the Index, with the score fluctuating from -3 in January, up to 4 in February, 1 in March, -7 in April, and 2 in May.
In response to an open-ended question about the most serious threat to achieving their household financial goals, affluent investors in June cited: the economy (35%); the political climate (14%); market conditions (13%); inflation (9%); unemployment (7%); and health-related issues (1%). Those citing the economy rose from 22% in March 2011, the last time this question was asked, while those citing the political climate fell from 22%.
“The nation’s wealthiest investors overwhelmingly cited the economy as their biggest concern. Given the worrisome economic news that emerged in June, it’s not surprising to see wealthy Americans struggling with their investment optimism,” said George H. Walper, Jr., President of Spectrem Group.
The Spectrem Affluent Investor Confidence Index is based on 250 monthly email interviews with the financial decision-makers in households with $500,000 or more in investable assets. The Spectrem Millionaire Investor Confidence Index is based on a subset of the overall survey group.