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Millionaires Now More Pessimistic than the Affluent
This entry was posted on 5/12/2008 11:42 AM and is filed under wealth marketing.
Chicago, May 7, 2008 /PRNewswire/ — Spectrem Group announced today that
its Spectrem Millionaire Investor Index (SMII)(R) fell 1 point in April
to -14, dropping below the affluent index for the first time ever.
The decline in the millionaire index brings it to a new record low
of -14, a mildly bearish reading and 1 point below its previous
all-time low of -13, set in March 2008. The April decline represents
that continuation of a downward trend for the index that began in June
2007. Since June, the millionaire index has registered a net decline of
34 points.
Meanwhile, the Spectrem Affluent Investor Index (SAII)(R), which
measures the investment outlook of households with $500,000 or more in
investable assets, rose 7 points in April to -13, following a March
2008 decline. Like the millionaire index, it stands in mildly bearish
terrain for a second consecutive month. However, for the first time
since both indexes' inception in February 2004, the millionaire index
stands below the affluent index.
"Millionaires have become more pessimistic about their investments
than the broader affluent population for the first time since we began
tracking both measures in early 2004. Continuing a downward trend that
began in June, millionaires' optimism eroded once again in April,
sinking to a new low as the prospects for a recession continued to
weigh heavily. However, the investment outlook for the affluent was
buoyed by April's financial market upswing. With the nation's economic
outlook remaining uncertain, it will be interesting to see if the
millionaires' increased pessimism will be borne out," said George H.
Walper, Jr., President of Spectrem Group and co-author with Spectrem
Managing Director Catherine S. McBreen of the new book "Get Rich, Stay
Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest
Families" (Portfolio, January 2008).
In response to an open-ended question about the one factor most
affecting their investment plans, affluent investors in April cited:
stock market conditions (27%), the economy (17%), retirement issues
(6%), housing and real estate (4%), household cash flow (4%), household
income (2%) and job security (1%). The percentage choosing stock market
conditions rose from 26% in January 2008, the last time this question
was asked.
Millionaires expressed slightly more concern about stock market
conditions (28%), retirement (7%) and housing and real estate (6%) in
April than the affluent.
Historical Performance — 6 Months
November December January February March April
Spectrem
Affluent
Investor
Index(R) -5 0 -13 -10 -20 -13
Spectrem
Millionaire
Investor
Index(R) 3 8 -6 -5 -13 -14
The Spectrem Affluent Investor Index(R) 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(R) 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(R) and the Spectrem Millionaire
Investor Index(R) are announced at 8 a.m. Eastern time on the first
Wednesday of each month.
Report Availability
Spectrem Group's monthly report series presenting and analyzing the
Spectrem Affluent Investor Index(R) and all of its components,
including the Spectrem Millionaire Investor Index(R), 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.
Catherine S. McBreen and George H. Walper, Jr., Spectrem Group's
Managing Director and President, respectively, are authors of the new
book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets
of America's Richest Families" (Portfolio, January 2008).
Source: Spectrem Group
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