If you were looking for a shot of good news, a Gallup poll released yesterday might be just what the doctor ordered — investor optimism is ticking upward.
Okay, before we get too giddy with that statement, let’s look at the facts. According to the study, while pessimism still rules, it rules less, if that makes sense.
Taking a look inside the numbers, we see that the Gallup Index of Investor Optimism experienced a significant hike in March, increasing 41 points to -23, up from -64 in February. That February figure was the lowest level in the Index’s 13 years.
While the news is not “great,” at least it’s moving in the right direction and that’s something you can begin to gauge with your clients, by asking them where they are on the optimism scale.
According to Gallup, the index surveys those with $10,000 or more in investable assets. Analysts at the firm say that the investor optimism swing coincides with a recent uptick in consumer confidence as well, particularly among the wealthy.
“The ‘wealth effect’ associated with a sharp increase in stock values clearly has a positive impact on all consumers and an even more pronounced effect on upper-income consumer confidence. If this continues for some period of time, it should also result in increased spending by upper-income households — something the economy desperately needs.”
For now, we’ll have to keep an eye on the direction such studies take, and with you on the frontline, you’ll be able to get a quick study of your clients, their mood and confidence level.
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