Confidence among affluent investors and millionaires declined last month, according to research released last week.
Spectrem Group, a Chicago research firm, announced Wednesday that its Spectrem Affluent Investor Index fell 5 points in November to a reading of negative five, matching its second-lowest level ever and that its millionaire investor index fell 11 points to 3, matching its second-largest decline since the index was introduced in February 2004.
The affluent index, which measures the investment outlook in households with $500,000 or more of investable assets, now stands a point above its all-time low of negative six, which was set in October 2005. It last stood at negative five, a neutral reading, in August 2006.
The Spectrem Millionaire Investor Index's largest decline was in March, when it dropped 14 points. The November decline returned the index to neutral terrain from a mildly bullish reading.
"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., Spectrem's president. "With both groups expressing concern about housing and real estate, as well as energy prices, we may not see a significant turnaround in optimism anytime soon."
In response to an open-ended question about the news most affecting their economic outlooks, affluent investors in November cited 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%).
Millionaires expressed greatest concern about housing and real estate (31%) and rising oil and gas prices (20%).
