Nearly Half of Affluent Investors and 52% of Millionaires Encouraged to Invest
by Election Results
After Election, the Iraq War, Economy and Deficit Had Biggest Influence on
Affluent Investors
CHICAGO, Dec. 1 /PRNewswire/ -- Spectrem Group announced today that its
Spectrem Affluent Investor Index(TM) rose slightly in November to a level of
5, with nearly half (48%) of affluent investors saying they were encouraged to
invest by the results of the November election.
The month's neutral reading continues a period of relative stability for
the Spectrem Affluent Investor Index(TM), which measures the investment
outlook of households with $500,000 or more in investable assets. The
affluent index was steady at 4 in both September and October. The Spectrem
Millionaire Index(TM) came in at 14 for November, identical to its level the
month before.
In a special post-election question, 52% of millionaires joined the 48% of
affluent investors saying the election results encouraged them to invest.
About one-quarter of both groups (24% affluent, 23% millionaires) expressed
indifference, with a similar percentage (27% affluent, 22% millionaires)
saying they were less encouraged to invest. The remainder responded they did
not know.
"The conclusion of the 2004 presidential election cycle appears to have
eliminated significant uncertainty in the minds of affluent investors.
Whether purely political in nature or driven by expectations about the
economy's direction, this is clearly being viewed by these investors as a
positive. The big question now is what will drive the investment outlook of
the nation's wealthiest investors going forward. Other than the Iraq War,
core economic issues such as the economy, federal budget deficit, and oil and
gas prices appear to be top of mind," said George H. Walper, Jr., President of
Spectrem Group.
In response to an open-ended question about the news events driving their
economic outlook, more than one-third of affluent investors (36%) cited the
presidential election and 16% the Iraq War. Beyond those two events, affluent
investors selected the economy (7%), deficit (6%), increasing oil and gas
prices (4%), higher interest rates (4%) and stock market conditions (4%).
Interestingly, the percentage concerned about higher energy costs fell
considerably from May (19%) and August (20%), when this question was last
asked.
Millionaires were twice as focused on the economy as the broader affluent
group (14% vs. 7%), but significantly less influenced by the Iraq War (10% vs.
16%).
Historical Performance - 6 Months
November October September August July June
Spectrem Affluent Investor
Index(TM) 5 4 4 5 8 16
Spectrem Millionaire Index(TM) 14 14 7 13 15 23
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 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
Index(TM) 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(TM) and all of its components, including the
Spectrem Millionaire 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.
SOURCE Spectrem Group
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Related links:
http://www.spectrem.com
CONTACT:
Farrell Kramer for Spectrem Group,
+1-201-768-5337, farrell@farrellkramer.com
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