Despite Strengthening Confidence in the Direction of the U.S. Economy, Investors Indicate Rising Concerns About Market Valuations

CHICAGO, IL, UNITED STATES, February 1, 2018 /EINPresswire.com/ -- During a month in which the Dow Jones Industrial Average topped 26,000 for the first time in its history, affluent investors may be beginning to worry about an eventual burst of the bubble, Spectrem Group reported today in its High Net Worth Insights newsletter. The Spectrem Millionaire Investor Confidence Index (SMICI®) and the Spectrem Affluent Investor Confidence Index (SAICI®) both declined three points in January, now standing at 15 and 9, respectively.

The monthly Spectrem Investor Confidence indices track changes in investment sentiment among the 17 MM households in America with more than $500,000 of investable assets (SAICI), and those with $1 MM or more (SMICI). The survey was fielded between Jan. 12-19, 2018.

However, while wealthy investor sentiment waned slightly in January, confidence about the direction of the U.S. economy soared, with Spectrem’s Household Outlook reaching a 13-year high in the month. The Outlook, which is a monthly measure of the long-term confidence among investors across four financial factors which impact a household’s daily life, reached 39.60, the highest mark it has achieved since February of 2005. Since that time, the Outlook has never been above 38.0.

The increased Outlook was due mostly to improved confidence in the economy across all investors surveyed. The Outlook for economic matters rose from 7.63 to 38.58, the highest level since January of 2011. The dichotomy between the affluent investor confidence indices and the household outlook are clear indicators that investors are wary of how much longer markets can continue to rise.

“Investors clearly are optimistic about a strengthening economy, record market performance and recent tax reform,” said Spectrem President George H. Walper, Jr. “But they are also signaling concern about being overexposed if this current market bursts. The research indicates that while investors are not pulling back yet, they are currently not inclined to increase their market exposure.”

Charts, including a deeper analysis of the Index and its methodology, are available upon request. Additional insights include:

• While the Economy Booms, Investors Stand Back

About Spectrem Group: Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.

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George H. Walper, Jr.
Spectrem Group
(224) 544-5350
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