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Political Climate and Economy both a threat |
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The Economy and the Political Climate are tied as the two issues that are the most serious threats to the affluent achieving their financial goals. These issues have been a thorn in the side of the affluent for the past year. Considering the current climate, both economically and politically, these perceptions are unlikely to change in the near future.
With health care legislation threatening business owners as well as the link on surtaxes on the wealthy, it is no surprise that the Political Climate has increased as a concern for investors. Millionaires are more concerned with the current Political Climate than are the Affluent, perhaps fearing the tax implications that are being promulgated by the Democratic Obama administration have only just begun.
Inflation also increased as a concern from 2% in March of 2009 to 8% this month. This is despite the fact that the Federal Reserve has made it clear that it does not intend to increase interest rates this year. The slight decrease in concern over Market Conditions and the Economy over the last few months may be because investors are accepting the “new normal” that the economic crisis has brought about. At the same time, the market has seen a sort of stabilization with the Dow consistently falling within 8000-85000 range. Granted that is still tumultuous but less frantic than six months ago.
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