The Dow’s resurgence this year has convinced many wealthy US investors to reinvest their money in equities, but those rich households are still expressing some trepidation about the market’s health, a new report shows, according to Bank Investment Consultant.

Spectrem’s latest “High Net Worth Advisor Insight” report found that 16 per cent of people with more than $500,000 investable assets were convinced to invest in equities when the Dow Jones Industrial Average index of blue-chip US stocks reached 9,000 in July.

The report of greater investor confidence has been echoed by recent investment confidence barometers produced by groups such as Merrill Lynch, which shows global investment firms have reduced their cash holdings and are more bullish on the stock market.

An additional 15 per cent had already felt it was time to invest in equities before then. Approximately 26 per cent will reinvest once the Dow tops 10,000. This would mean that more than half of wealthy investors are investing in equities again. Meanwhile, 11 per cent of investors said they will never invest in the markets again.

The Spectrem Millionaire Investor Index (SMII) rose only four points in July, to -20 from -16. This was an improvement from June, however, when the SMII plummeted a record 18 points. The Spectrum Affluent Investor Index gained one point in July, to -19 from -20.

 But the number of affluent investors who say they are “not investing” dropped to15 per cent from 22 per cent in June.