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Affluent’s Investing Confidence Rises
Wendy Connett
24 November 2010
The
TNS Investor Confidence Index rose to 116 in October, its highest level since
hitting 129 in 2007. The rise
extends an upward trend from a mid-crisis low of 81 in October 2008. TNS’
Index tracks with others. The
Spectrem Affluent Investor Confidence Index,
which measures the investment confidence and outlook of households with
$500,000 or more in investable assets, rose 3 points in October, as previously
reported by Family Wealth Report. Despite
modest economic and job growth, affluent investors were feeling more confident
about how their own investments and the broader US stock market will perform
over the next six months, according to TNS. "This
increase corresponds with substantial increases in the stock markets, with the
Dow Jones, S&P and NASDAQ averages each rising 10% between August 26th and
October 18th," said Ellen Sills-Levy, senior vice president at TNS. This
higher confidence is reflected in affluent investors' investing plans. Compared to earlier in the year, more
affluent investors said they planned to invest more heavily in international
investments (15 per cent), commodities (11 per cent) and real estate (10 per
cent). But fixed rate investments
still attract the greatest interest (19 per cent). The
Index is based on a survey conducted online September 29–October 25 and
reflects the answers of 3,936 respondents who had total investable assets of
$500,000 or more.