The
investment confidence of millionaires plummeted in August, according to the Spectrem
Millionaire Investor Confidence Index. Confidence fell 11 points to –18, the
biggest decline since June 2009, when it fell a record 18 points to –20. 
It also returns the index to mildly bearish territory after 12 consecutive
months in neutral.

The
Spectrem Affluent Investor Confidence Index, meanwhile, fell 4 points in August
to –20. The affluent index measures the investment confidence and outlook of
households with $500,000 or more in investable assets.

“Millionaires
posted their biggest decline in investment confidence in more than a year in
August, while affluent investors saw their confidence decline for a
third-straight month.  The millionaires’ decline is particularly troubling
since it suggests millionaires, typically more sophisticated than the broader
affluent population, are reverting to a bearish frame of mind,” said George
Walper, president ofSpectrem Group.

In
response to an open-ended question about the news
story most affecting their economic outlook, affluent investors in August cited
the political environment (18 per cent), unemployment (16 per cent), the economy
(11 percent) and stock market conditions (8 per cent) as topics highest on their
radar. Those citing the political environment rose from 13 per cent in May, the
last time this question was asked, and those citing unemployment rose from 6
per cent. 

Millionaires were more focused on the political environment (25
per cent) than the affluent, but less focused on unemployment (13 per cent).