Tags: Survey | millionaires | economy | stock

CNBC Survey: Millionaires Growing More Confident on US Economy

By    |   Wednesday, 10 December 2014 12:03 PM

Many Americans are downbeat on the economy as they see their wages stagnate, but that's apparently not the case with the country's millionaires.

More than 50 percent of those with investible assets of $1 million and up think the economy will strengthen in the next year, up from 42 percent six months ago, according to a CNBC survey conducted in November by Spectrem Group.

So what accounts for the increased enthusiasm?

Accelerating job growth, the continuing ascent of stock prices and some degree of political certainty now that the mid-term elections are over, Tom Wynn, director of affluent research for Spectrem, told CNBC.

Non-farm payrolls have increased more than 200,000 for 10 straight months, and the S&P 500 index and Dow Jones Industrial Average keep hitting record highs. Republicans scored major gains in last month's elections.

To be sure, the wealthy investors expect more tempered gains in the stock market next year: 48 percent see gains of 5 to 10 percent, which is down from 54 percent in the March survey. The S&P 500 has generated a return of 13.6 percent this year.

In addition, 21 percent of those with more than $5 million in investible assets believe the stock market will return 10 to 15 percent in 2015.

Only 9 percent of the millionaires surveyed expect the S&P 500 to fall 5 to 10 percent next year, up from 7 percent in the last survey, and 4 percent expect a decrease of 10 to 15 percent.

According to the survey, the greatest risk to the economy for the next year is government dysfunction followed by geopolitical unrest.

Meanwhile, the Conference Board's consumer confidence index fell to 88.7 in November from 94.1 in October.

But not everyone drew negative conclusions from that report. It "doesn't change our view that the trend in consumer confidence is moving upwards," David Kelly, chief global strategist at JPMorgan Funds, told Bloomberg.

"Gasoline prices are down, the unemployment rate is down, home prices are gradually rising and stock prices are certainly rising."

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Many Americans are downbeat on the economy as they see their wages stagnate, but that's apparently not the case with the country's millionaires.
Survey, millionaires, economy, stock
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2014-03-10
Wednesday, 10 December 2014 12:03 PM
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