Affluent Increase Focus on Election, Economy as Concerns about Iraq War, Energy Costs Ease

Spectrem Millionaire Investor Index(R) Declines 1 Point to -9

Spectrem Group announced that its Spectrem Affluent Investor Index (SAII)(R) rose 4 points in August to -13, posting its first gain since April 2008.

The rise in the affluent index, which measures the investment outlook of households with $500,000 or more in investable assets, brings it off its second-lowest level ever of -17, registered in both July and June of 2008. Despite the advance, the index remains at its third-lowest level ever, a mildly bearish reading it also hit in May, April and January of 2008.

Meanwhile, the Spectrem Millionaire Investor Index (SMII)(R) dipped 1 point in August to -9, remaining in neutral territory. This follows a 4-point rise in July 2008 that brought the index off its third-lowest level of -12, reached in June 2008.

"The gap between affluent and millionaire investors narrowed slightly in August, with the affluent seeing moderate improvement in their investment outlook and millionaires posting a small, 1-point decline. However, with index levels still hovering well below zero and concern about the upcoming presidential election growing considerably among both groups, the prospects for significant improvement over the next several months remain unclear," said George H. Walper, Jr., President of Spectrem Group and co-author with Spectrem Managing Director Catherine S. McBreen of the new book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008).

In response to an open-ended question about the news story most affecting their economic outlook, affluent investors in August cited: increasing oil and gas prices (25%), election results (22%), the economy (12%), housing and real estate (8%), Russia's invasion of Georgia (4%), and the Iraq War (1%). The percentage choosing election results rose from 6% in May 2008, the last time this question was asked, and those selecting the economy increased from 5%. Meanwhile, the percentage choosing oil and gas prices fell from 45% in May while those selecting the Iraq War dropped from 3% -- after climbing as high as 39% in February 2007.

Millionaires expressed slightly more concern about election results (24%) in August than the affluent but were less worried about oil and gas prices (20%).

  Historical Performance - 6 Months

                March     April     May       June      July      August
  Spectrem
   Affluent
   Investor
   Index(R)      -20       -13       -13       -17       -17       -13
  Spectrem
   Millionaire
   Investor
   Index(R)      -13       -14        -9       -12        -8        -9

Methodology

The Spectrem Affluent Investor Index(R) is based on 250, 10-minute telephone interviews each month, giving the data a margin of error of plus or minus 6.2 percentage points. Interviews are conducted with the financial decision-makers in households with $500,000 or more in investable assets. The Spectrem Millionaire Investor Index(R) is based on a subset of the overall survey group that can vary each month. It is typically drawn from more than 100 monthly interviews.

The Spectrem Affluent Investor Index(R) and the Spectrem Millionaire Investor Index(R) are announced at 8 a.m. Eastern time on the first Wednesday of each month.

About Spectrem Group

Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets. It integrates proprietary research with expertise in building business, marketing and M&A strategies. Spectrem professionals have held senior management positions at leading global companies. Through a collaborative process, they create and implement practical and profitable strategies that fit the cultures of client firms.

Source: Spectrem Group

Web site: http://www.spectrem.com/