Investors were rattled by the thousand-point fluctuation in the Dow Jones Industrial average in late October, according to Spectrem Group. Both millionaire and affluent investors said they would avoid individual stock investing, even though the overall effect was negligible.
Spectrem’s monthly investor confidence indices, which track changes in investment sentiment among the 17 million American households with more than $500,000 of investable assets (SAICI), and those with $1 million or more (SMICI).
The SMICI dropped four points to 3 in October, while the SAICI fell two points to 4.
These are the indexes’ ranges: -31 to -51, bearish; -11 to -30, mildly bearish; 10 to -10, neutral; 11 to 30, mildly bullish; and 31 to 51, bullish.
Spectrem fielded its survey between Oct. 19 and Oct. 25, during which the DJIA fluctuated between a high of 25,608 and a low of 24,583.
Spectrem noted that investor confidence fell in October as political commentators increasingly touted Democrats’ chances of taking control of the House of Representatives after the midterm elections and stymying some of the White House’s pro-business plans going forward.
Another tariff the U.S. imposed on China also sapped investor optimism as trade negotiations continued between the countries. Likewise, the prospect of sanctions against Saudi Arabia in the aftermath of Saudi dissident Jamal Khashoggi’s murder, which could affect oil imports.