The indexes, compiled by market research and consulting firm Spectrem Group, measure the investment confidence and outlook of U.S. households with more than $500,000 of investable assets (affluent investors), and those with $1 million or more (millionaire investors). This month’s survey was fielded between Nov. 16 and Nov. 22.
According to Spectrem, news stories about terrorism – more than reports about the economy, oil prices or the political environment – are having the biggest impact on affluent investors’ economic outlook.
When asked in November what story in the news was most affecting their economic outlook, one-third of affluent respondents said “terrorism.”
This is significantly greater response than others: the political environment (12%), international problems (9%), oil prices (4%), the economy and unemployment (3% each) and stock market conditions (2%).
On Nov. 13, terrorists killed 130 people in Paris.
“Despite rising optimism about their personal financial situation tied to favorable economic reports in November, affluent investors remain cautious and uncertain about the market,” said George H. Walper Jr., president of Spectrem, said in a statement. “Among their concerns include lingering doubts about the direction of the global economy, the ongoing threat of terrorism following the horrific attacks in Paris and the strong likelihood of a December rate hike by the Federal Reserve.”
According to this month’s survey, 10% of affluent investors indicated that a rise in interest rates was the news story most affecting their economic outlook.
Fed officials indicated on Nov. 18 – during the fielding period for Spectrem Group’s survey – that they expect to raise interest rates before the end of the year for the first time since 2006.
Not surprisingly, the “interest rates increase” response to Spectrem Group’s survey has increased since February of this year from 3% to 10% in the November survey.
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