The Spectrem Affluent Investor Index fell 5 points in November to -5, matching its second-lowest level ever. The index, which measures the investment outlook of households with $500,000 or more in investable assets, now stands just 1 point above its all-time low of -6, which it set in October 2005. The affluent index previously stood at -5, a neutral reading, in August 2006.
Meanwhile, the Spectrem Millionaire Investor Index fell 11 points in November to 3, matching its second-largest decline ever, which took place in June 2006, and approaching its all-time biggest drop of 14 points in March 2007. The November decline returned the index to neutral terrain from mildly bullish.
"Investment optimism among the affluent and millionaires eroded significantly in November, a month that saw the stock market erase much of its 2007 gains," said George H. Walper, Jr., President of Spectrem Group, a Chicago-based consulting firm. "Millionaires recorded a sharp decline in optimism during the month, but as usual remained somewhat more positive than the broader affluent population."
The most pressing economic concerns among affluent investors are: housing and real estate (25%), increasing oil and gas prices (20%), the political climate (8%), the Iraq War (7%), the economy (3%), and interest rate increases (1%). The percentage choosing housing and real estate fell from 43% the last time this question was asked, in August 2007, while the percentage citing oil and gas prices rose from 1%.