Optimism Continues as the Millionaire
and Affluent Indices Regain Lost Ground

As the Dow Jones continues to defy gravity and break new highs, the Spectrem indices continued their climb--fully recovering from their precipitous, and record-setting drop after the stock market correction of Q1’07.

The Millionaires led the way this month, with a steady rise to 20, their highest point in twelve months. This is after their dramatic jump last month of +10 points. Though the Affluent lagged the Millionaires by one point (+4), they also gained, joining them in mildly bullish territory.

This month, Spectrem’s survey on Investment Preferences, showed that Cash and Bond investing both dropped, which contributes to the rising indices. Both indices, however, are tempered by a more pessimistic overall economic outlook, among the affluent. Other investments, including stocks, real estate, and mutual funds, either rose slightly or remained level.

The affluent sent mixed signals this month in Spectrem’s Overall Household Outlook. Curiously, they expressed optimism about their company health (+8 points), despite a sharp -16 point drop in sentiment about the economy. Also dropping, though not as sharply, was sentiment about household income and assets.

Increasing gas prices, shot up as an important news story for the affluent, for the first time in 9 months.

Millionaires and the Affluent are mirroring a national concern. As gas prices soar to record highs, and a new Gallup poll reports that 75% of Americans “would tell President Bush to focus on an exit strategy that removes U.S. forces from Iraq,” both groups indicate that the stories affect their current economic outlook.

Though concern about the Iraq War fell –19 points since this past February, it remains high and equal to increasing gas/oil prices, as a news story concerning affluent economic outlook.