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April 2007: Investment Preferences |
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Spectrem Investment Preferences finds the affluent applying the brakes to new investments for the coming month. Not Investing has turned upwards, and all investment categories have declined, some sharply, except for Real Estate which showed a slight uptick (despite the recent sub-prime mortgage default crisis).
This pulling back from investments is influenced by the global stock market plunge begun on February 27, from which the market has tried, but still not fully recovered. But as Perceptions of Issues illustrates (p.3), that may not be the only reason for lack of interest in new investing.
The negativity of the wealthy has been rather encompassing. Perhaps a sign that the favoritism they have shown towards equities, as their investment of choice, has increased their risk exposure more than they might be comfortable with.
Surprisingly, while millionaires intend to cut back sharply on stock investing, non-millionaires showed a slight increase in stocks. However, this is tempered by higher non-millionaire numbers for Not Investing.
     
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