Affluent Investor Confidence Slips

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    A year-end market rally and the second Fed interest rate hike in a decade served to slightly dampen U.S. affluent investor enthusiasm in December. The Spectrem Affluent Investor Confidence Index (SAICI) and the Spectrem Millionaire Investor Confidence Index (SMICI) each posted slight decreases in December. The SAICI ticked downward three points from the previous month to five, while the SMICI decreased two points to 12. Both indices stood one point higher than in December 2015. However, the Spectrem Affluent Household Outlook, a monthly measure of four financial factors that impact investors’ daily financial lives, surged to a 19-month high in December driven by millionaires’ increased long-term confidence in the economy. Although investors continue to see the political climate as the most serious threat to achieving their financial goals, the level of concern has decreased dramatically since the November election of Donald Trump as president. Spectrem says the slight dip in confidence can be attributed to affluent investors waiting to see how the market plays out as it continues to test unprecedented highs.