Millionaires and the Affluent Slightly More Confident About

 

Sunday, Apr 05,2009, 9:34:54 PM   Click:

2 April 2009

SOURCE: InsuranceNewsNet, Inc.

Spectrem Millionaire Investor Index (SMII) and the Spectrem Affluent Investor Index (SAIIA) increased in March 2009 after a sharp drop the previous month. The SMII rose eight points after a fall of 13 points in February 2009. The SAIIA also earned eight points, after dropping 10 points in March in the previous month.

The SMII SAIIA measure and the investment of households $ 1 million of financial assets and more than $ 500,000 of investment assets, respectively. Each index also looks at the attitudes of investors about the economic outlook, investment preferences hypothetical and actual investment intentions for the coming months.

Spectrem The data show that the millionaires and the rich are slightly more optimistic in March than in February due to improvements in the stock market, low energy prices and positive news on housing construction. But the group also said it was too early to say whether the latest findings indicate that investment optimism among the wealthier investors are beginning to stabilize.

While the latest reports on construction spending, manufacturing and sales of housing should suggest the recession in May near cheap shots, analysts anticipate more bad news to come before the economy stabilizes and begins to recover. Standard & Poor's noted that the economy, the rate of decline has slowed - but it will continue to slide.

Nevertheless, the SAIIA SMII and showed that the millionaires and the rich are less concerned about the economy as a threat to achieving their financial goals. A maximum of 38 per cent in September 2008, it fell to 27 per cent in March. Concerns about market conditions and unemployment as a threat to achieving their financial goals have also decreased by 3 percent and 6 percent, respectively, from February.

SMII SAIIA and the positive outlook on the economy to take account of the Conference Board Consumer Confidence Index. He went to 26 March from February'sa record of 25.3. This is the first increase recorded since November 2008 and ended three months of declines.

On the other hand, concerns about the political climate as a threat to the achievement of financial targets and rich millionaire households in March rose to 18%. This is 10 percent more than the previous month, making it the second greatest threat after the financial economy and the overcoming of market conditions.

At the heart of the political issue is Obama administration 789 billion dollars of stimulation and other efforts to help the country out of economic recession. Many do not believe that the strategy will revolve around the current crisis.

Critics of the plan maintain that it focuses on costs of social programs and reforms in health care, education and energy will not be likely to create new jobs. Others say that the investment elements of the bill are not carefully designed. In addition, most of the stimulus in the package is expected to take three or four years to kick in - while the economy is deteriorating day by day now.

In terms of preferences of the hypothetical investment and SMII SAIIA indicated that the number of households that are not investment fell slightly in March, signaling a return to investment. Cash investment reached a new peak in March and Spectrem speculates this may be due to market fluctuations and the tendency of the rich and millionaires to invest with caution.

In reality investment intentions for the coming month, there were also signs that the wealthier households showed an increase in intentions to buy stocks of more millionaires. In an independent report, William Greiner, Chief Investment Officer at UMB Bank, said that the time has come for investors to put money back to work in the stock market as the table was set for the financial markets stabilize and rebound.

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