Millionaire Investor Confidence Drops

Some of the nation’s wealthiest individuals demonstrated marked decreases in investment confidence over the final month of 2009 with rising concerns about the political and economical climate taking grasp.

According to a new survey done by Chicago-based research company Spectrem, the Spectrem Millionaire Investor Confidence Index fell 6 points in December to -10. In November, the index saw only a modest rise.

A similar index used to measure the investment confidence and outlook of households with $500,000 or more in investable assets, known as the Spectrem Affluent Investor Confidence Index, fell five points in December to -15 just off the heels of a five point gain in November. The Spectrem Affluent Investor Confidence Index is based on “250 monthly interviews with the financial decision-makers in households.”

George Walper, the president of Spectrem Group explains, “Affluent investors and millionaires saw their investment confidence decline in December, with the affluent returning to a mildly bearish stance. While more positive on the economy, rising concerns about the political climate are making wealthy Americans a little less optimistic heading into the New Year.”

In December, affluent investors were questioned about the most serious threat to achieving their financial goals. Twenty-two percent responded the political climate, 18 percent said the economy, 12 percent cited unemployment, six percent said market conditions, another six percent said inflation, and finally four percent cited health-related issues as the most serious threat to achieving their financial goals.

According to the survey, millionaires are more concerned about political change than the affluent; however they were less concerned about the economy.