Spectrem Affluent Investor Index (SAII) and the Spectrem Millionaire Investor Index (SMII) both fell 9 points to their all-time lows in one of the most dramatic months in American financial history. The SAII plummeted to –22 and the SMII down to –18.

The closing days of September 2008, finds the U.S. Congress and Treasury heatedly debating and fine-tuning a $700 billion financial rescue plan, meant to fend off almost certain economic disaster. Not since the Great Depression has the nation seen such an extensive period of government intervention into the financial system, and in so short a time period.

The recent economic struggle began on September 8, when the government took control of Fannie Mae and Freddie Mac, who were no longer able to cover their sub-prime mortgage losses. It continued a week later with Lehman Brothers petitioning for the largest bankruptcy filing in U.S. history ($600 billion), this was followed with the Treasury and Federal Reserve orchestrating an $85 billion bailout of AIG, the largest insurance company in the world.

The stock market responded with wide-swinging bipolar movements. In Spectrem’s measure of Investment Preferences, the affluent continued to invest, though conservatively, with Cash seeing increased activity, and lesser but positive movement into Stocks, as some take advantage of swinging stock prices for short-term speculation.

The only thing more surprising about Affluent and Millionaires naming the “Economy” as the most serious threat to achieving their household’s financial goals is that it is not more of a concern. Considering the apocalyptic news headlines of the last month, the fact that only 38% of the affluent feel the economy is the most serious threat is startling, and may be testament to their overall fiscal wherewithal.

The Economy is at its highest point as a perceived threat in a year, and has risen sharply since June of this year. Nerves are frayed across the country as America holds its collective breath to see which institutions may fall next and what our leaders will do in the face of this crisis.

The concern which is a distant second to the Economy is Market Conditions, though perhaps just another spur of the same issue.

The Affluent Household Outlook dropped 16 points from 7.3 to –9.3 to its second lowest point, since June 2008’s lowest mark at –8.5. The steep drops in the Outlook components of Household Income (-17.5), Household Assets (-17.6) and Company Health (-14.4) were the largest factors in dragging the whole Index down, much more so than investment behavior.

For more information: Manage Your Client Relationships through the Financial Crisis: Be Pro-Active, Not Reactive

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