Mark McSherry
Big Investor Outlook Falls to 9/11 Level
Tue Jun 8, 2004 12:14
66.89.82.218

Big Investor Outlook Falls to 9/11 Level
By Mark McSherry | June 8, 2004

NEW YORK (Reuters) - The outlook for the U.S. economy among affluent investors polled by Chicago-based consultants Spectrem Group in May fell to the same level as it was in the aftermath of the attacks of Sept. 11, 2001.

Spectrem Group said Tuesday its "affluent investor index" fell to a level of 12 in May from 16 in April, remaining in "mildly bullish territory."

However, the index's measurement of the U.S. economic outlook for the next 12 months fell dramatically from 40 in April to 15 in May -- the same level seen shortly after the attacks.

The Spectrem affluent investor index measures the investment outlook each month of 250 U.S. households with $500,000 or more in assets to invest.

Spectrem said ongoing hostilities in Iraq, higher oil and gas prices, uncertainty over the U.S. presidential election and potential interest rate increases were the main news events that drove future economic outlook lower.

Spectrem's "millionaire index," which measures households with assets to invest of $1 million or more, fell to 19 in May from 25 in March and April.

This brought the roughly 100 millionaires polled more in line with overall affluent investors than in March and April, when millionaires demonstrated a more bullish investment outlook, Spectrem said.

UNCERTAINTY ABOUNDS

"Affluent investors clearly were put off in May by the hostilities in Iraq, sharply higher fuel costs and the uncertainty that typically comes with presidential elections," said George Walper, president of Spectrem Group.

"However, the fact that millionaires are now less bullish as well suggests that national and world events may be having a significant impact on the investment environment.

"Additional components of the Spectrem affluent investor index tell us that these investors remain quite cautious in terms of both asset allocation and investment product decisions."

The Spectrem affluent investor index is based on 250 10-minute telephone interviews each month.

Spectrem Group is a consulting firm specializing in the affluent and retirement markets.

© Copyright 2004 Reuters. Reuters content is the intellectual property of Reuters or its third-party content providers. Any copying, republication, or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.