US Millionaires’ Investment Confidence Falls in Oct

NEW YORK (Reuters) – Even for millionaires, life is not an eternal walk on Easy Street.

U.S. millionaires worried more about money in October than September, according to a survey released on Wednesday.

The Spectrem Group said its millionaire confidence index fell 2 points to -7 in October, marking its first decline since July.

The U.S. millionaire population in 2008 fell by 2.5 million to a five-year low of 6.7 million, as the financial crisis hit real estate and stock prices, Spectrum reported in March.

Spectrem’s survey of affluent households with $500,000 or more of investable assets also showed falling confidence in October, with the confidence index down two points to -15, keeping it in bearish territory.

“Overall, this suggests the nation’s wealthiest investors are reacting cautiously to the stock market … and recent signs that the economy may be coming back to life,’’ said George H. Walper Jr, president of Spectrem Group, a Chicago-based consulting firm specializing in the affluent and retirement markets.

Stock market conditions was the single biggest concern affecting investment plans of affluent investors, with 27% citing it in response to an open-ended question, Spectrem reported.

That was followed by the economic environment at 22 percent; the political climate at 7 percent; household income at 4 percent; and household cashflow at 4 percent.

The survey is based on 250 monthly interviews with financial decision-makers in households with $500,000 or more in investable assets.

(Reporting by Edward Krudy; Editing by Leslie Adler)

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