Only 48 per cent of US investors with more than $1 million in investable assets were optimistic in their three-month outlook on the US economy in June-July, according to a survey by Phoenix Marketing International.  This is a significant drop from April, when 62 per cent were optimistic. Their pessimism now matches that of a year ago.

Sovereign debt problems in Europe, coupled with continued disappointing economic news in the US, has reversed the optimistic mood of affluent households, according to the survey.

In June millionaire investors continued to rein in new investments, a pattern that started in February. Going forward, 61 per cent do not plan to make changes to their portfolios, up from 58 per cent in April and 54 per cent at the start of 2010. Only 29 per cent planned net increases to their positions, similar to their sentiment in June of 2009.

Thirty-one per cent increased positions in deposit accounts since the last survey in April, signaling investors appear to want easy access to their assets in the event the stock market shows signs of turning around. Meanwhile allocations to real estate rose 14 per cent, most likely due to low loan rates, according to the report.

Similar to millionaire households, 52 per cent of the mass affluent, defined by Phoenix as having $250,000 - $999,999 in investable assets, were pessimistic about the economy compared to 30 per cent in April. Seventy-two per cent did not plan to make substantive changes to their investment portfolios, similar to sentiment a year ago. The mass affluent also continued to add to their real estate holdings.

Every other month, Phoenix Marketing International’s Affluent Marketing Service tracks changes that mass affluent and millionaire households anticipate making to their investment portfolios in the following three months. Responses were received from 1,275 participants in June and early July.