The Spectrem Affluent Investor Index (SAII)® stayed steady at –17, beginning the second quarter of 2008 with a dismal consistency, still near its all time low. This month’s SAII hovering was not mirrored by the Spectrem Millionaire Investor Index (SMII)®, which rose 4 points from –12 to –8, showing some optimism on the part of Millionaires. 

It is not uncommon for the affluent to sit tight while the rest of investors react to market changes. The Millionaires slight rise in sentiment may be more of an indicator, as they are usually one step ahead of their Affluent brethren. Though the market is still chaotic, the country is in a bit of a waiting game; what will happen with the Presidential election, oil/gas prices, unemployment and how will the Fed react?

The sharpest movement this month in Investment Preferences was the rise in Not Investing, from 34.5 to 43.8, showing the summer doldrums may be affecting affluent investing behavior. A slight rise in both Stock and Bond Mutual Funds, while everything else fell, shows an ambivalence on the part of affluent investors despite market indicators, like high unemployment numbers, still signaling a weak economy. Cash also fell slightly, after last month’s enthusiastic jump into Cash, again, demonstrating their investing ambivalence.

In Perception of Issues, affluent attitudes followed suit. Considering that jobless rates hit a four-year high, GM and other companies posted massive losses, and the price of oil rose again, it is not surprising that Stock Market Conditions is what the affluent feel affect their investment plans the most. Those conditions are second only to a concern about the Economic Environment. All other concerns are distant compared to these two.

For the first time in five months the Household Outlook rose above zero, with the strongest single-month increase in a year. Showing a more than cautious rise in optimism about the economy and household income.

The Economy component rose dramatically from last month; –38.9 to –12, raising the Outlook up to its highest point in six months. In fact, every measure rose this month from last. Perhaps some of the dire predictions and panic is subsiding as the country focuses on other things like the upcoming elections and summer vacations.

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