Political Climate Biggest Concern to Millionaire Investors

Between the partisan battles over the debt ceiling, the first-ever downgrade of the U.S. credit rating and the unresolved Eurozone crisis, 2011 saw market swings that rivaled 2008.  Nearly three-quarters of investors (71.8 percent) surveyed by Spectrem Group in December said they were concerned about recent stock market volatility.

Stock Market Conditions were cited as the one factor most affecting investment plans by 38 percent of Affluent investors.  This is an increase of 5 percent since last October, which was the last time this question was asked, and the highest percentage in at least three years.

Other issues, too, are impacting Affluent investors’ investment plans.  Twelve percent said that Retirement is affecting how they invest.  In a separate survey conducted by Spectrem in December, eight out of 10 household said they are investing more conservatively.

Eighteen percent listed the Economic Environment as the factor most affecting their investment plans, which markets a decrease of four percentage points from three months ago, and down significantly from the peak of 27 percent in January 2009.

Household Income was listed as a factor affecting investment plans by 6 percent of Affluent investors.  This month’s Affluent Household Outlook finds confidence in Household Income was down just .31 of a point.  Millionaire household increased confidence helped to offset a drop in Non-Millionaire households.

The Political Climate was listed as a factor affecting investment plans by only 4 percent of Affluent investors, down from 13 percent last July, a benchmark for the year, when the debt ceiling debate was heating up.  The economy is sure to be a primary issue in the upcoming presidential campaign, one can expect that Affluent investors will be keeping an eye on this issue as the year unfolds.