One of the most glaring trends in the 2008 bear market was the increasing bearishness of the super rich. Generally thought of as more savvy investors and less susceptible to economic downturn, this group of investors proved more vulnerable than many previously thought. As the super rich pulled out of the markets in 2008 and pulled in their purse strings the economy ground to a halt.
Data released from Spectrem Group shows that the super rich are again becoming very bearish. Their Millionaire Investor Confidence Index plummeted to a new 2010 low and fell the most since summer of 2009. George H. Walper, Jr., President of Spectrem Group says the decline is worrisome:
“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.”
Source: Spectrem Group