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Affluent Investor Confidence Hits Record Low

By Alex Padalka July 7, 2017

American households with at least $1 million in investable assets have finally stopped losing confidence in the markets but still remain mildly bearish, according to a recent report from Spectrem Group. But confidence among the affluent – the 17 million U.S. households with $500,000 to $1 million in investments – continues to fall, according to the report.

In June, Spectrem’s investor confidence index – which measures wealthy Americans’ faith in the markets on a scale of -51 for most bearish to 51 for most bullish – grew three points to six among millionaires. That’s after a 17-point plunge from April to May -- the sharpest drop in investor confidence in the index’s history, according to Spectrem.

But the merely affluent continue losing faith in the markets. Their confidence has dropped to a one-year low of two points, according to the survey conducted in mid-June. Meanwhile, the percentage of wealthy investors opting out of investing altogether in the coming month has climbed continuously from 33.6% in February to 42% in June — the highest it’s been since December 2013, Spectrem found.

The authors of the report claim that many wealthy U.S. investors say it’s the country’s political climate that’s preventing them from attaining their financial goals. A full 25% of respondents say that this climate is a threat to their financial success, the survey found. And investor confidence may continue to fall even further.

“A majority of Spectrem Group’s investor confidence measurements, along with the overall outlook, continue to decline, and without a clear path forward, it is likely that they will continue to struggle,” Spectrem president George Walper, Jr. says in a press release accompanying the report.