Interest Rate Increase Affects Indices


    The U.S. Federal Reserve’s quarter point increase in interest rates contributed to a significant decline in the ‘Spectrem Affluent Investor Confidence’ indices for the month. The index dropped three points in December to four, while the ‘Spectrem Millionaire Investor Confidence Index fell four points to 11. For the fourth consecutive month, there was an increase in the number of affluent investors indicating they would hold on the investment sidelines in the coming month. “During 2015, investors faced significant market swings fueled by ongoing speculation over when the Federal Reserve would finally tighten interest rates,” says George H. Walper, Jr., president of Spectrem Group. “The initial turmoil in the market following the announcement of the federal open market committee’s decision confirmed these concerns, and played a critical role in the December drop in the indices.”