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Affluent Investors’ Confidence in the U.S. Economy Continues to Erode

November 2, 2021

Economic Outlook

Phoenix Wealth & Affluent Monitor Economic Optimism decreased significantly among Mass Affluent investors in October and decreased only slightly among High Net Worth Investors. After leveling off in September, Mass Affluent Economic Optimism again decreased to the lowest it has been since January 2021, dropping from 55% in September to 46% in October. Mass Affluents with a pessimistic view of the economy increased to 47%, a level of pessimism not seen since January. High Net Worth investors reported a smaller
decrease in Economic Optimism – from 54% in September to 52% in October – the lowest reported optimism since February 2021. Forty-one percent of this group reported having a pessimistic view of the U.S. economy.

Investing Outlook

The Phoenix Wealth & Affluent Monitor Investment Outlook saw a decrease of those who expect to put new money into investments among both Mass Affluent and High Net Worth investors. In September, 41% of both Mass Affluent and High Net Worth investors expected to increase their investments but those percentages have decreased to 37% and 36%, respectively. Instead of pulling money from the market, though, most of these investors intend to sit on their investments. In October 59% of Mass Affluent investors and 58% of High Net Worth investors intend leave their investments unchanged over the next three months while only 5% and 6% of investors, respectively, intend to pull money from the market.

Perspective

The trend of decreasing Economic Optimism continues among both affluent segments even as the stock market continues a general upward trend. While slightly fewer affluent investors are adding money to their investments, more are content to just sit on their investments. Waning confidence in the economy is likely a product of the news’ continuous reporting of rising oil prices, supply chain issues, post-pandemic employment troubles, and increased government spending.

 

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