US affluent investors may be beginning to worry about an eventual burst of the bubble, according to research from the Spectrem Group.
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.
However, while wealthy investor sentiment waned slightly in January, confidence about the direction of the US economy rose, 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.
“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.”
The monthly Spectrem Investor Confidence indices track changes in investment sentiment among the 17 million households in America with more than $500,000 of investable assets (SAICI), and those with $1 million or more (SMICI).