Spectrem Millionaire Investor Index(R) Surges 11 Points in October to 14

CHICAGO, Nov. 7 /PRNewswire/ -- Spectrem Group announced today that its Spectrem Millionaire Investor Index (SMII)(R) advanced 11 points in October to 14, returning to mildly bullish territory for the first time since July 2007.

The sharp rebound contrasts with a general decline in the millionaire index that began in June 2007. It also represents the third-largest gain ever for the millionaire index, which achieved its record advance of 13 points in November 2005 and gained a near-record 12 points in September 2006.

Meanwhile, the Spectrem Affluent Investor Index (SAII)(R), which measures the investment outlook of households with $500,000 or more in investable assets, rose 1 point to zero, remaining in neutral territory, where it has been since June 2007.

"Millionaires and the affluent both demonstrated increased investment optimism in October, acknowledging the stock market's record highs during the month. However, the two groups drew very different lessons from the news. Millionaires returned to mildly bullish territory with their third-biggest advance ever, whereas the affluent were far more cautious and remained neutral about the investment environment. Only the next few months will tell us which group had the better instincts," said George H. Walper, Jr., President of Spectrem Group and co-author with Spectrem Managing Director Catherine S. McBreen of the upcoming book "Get Rich, Stay Rich, Pass It On: The Wealth- Accumulation Secrets of America's Richest Families" (Portfolio, January 2008).

In response to an open-ended question about the factor most affecting their current investment plans, affluent investors in October cited: stock market conditions (23%), the economic environment (12%), household cash flow (7%), retirement issues (6%), household income (4%), housing and real estate (4%), and job/job security (1%). The percentage choosing stock market conditions rose from 20% in July, the last time this question was asked.

Millionaires likewise cited stock market conditions (24%) as the factor most affecting their current investment plans, followed by the economic environment (11%) and retirement issues (7%).

    Historical Performance - 6 Months

                   May    June     July    August    September    October
    Spectrem
     Affluent
     Investor
     Index(R)       11       7       7       -1         -1           0

    Spectrem
     Millionaire
     Investor
     Index(R)       20      15      15        7          3          14

Methodology

The Spectrem Affluent Investor Index(R) is based on 250, 10-minute telephone interviews each month, giving the data a margin of error of plus or minus 6.2 percentage points. Interviews are conducted with the financial decision-makers in households with $500,000 or more in investable assets. The Spectrem Millionaire Investor Index(R) is based on a subset of the overall survey group that can vary each month. It is typically drawn from more than 100 monthly interviews.

The Spectrem Affluent Investor Index(R) and the Spectrem Millionaire Investor Index(R) are announced at 8 a.m. Eastern time on the first Wednesday of each month.

Report Availability

Spectrem Group's monthly report series presenting and analyzing the Spectrem Affluent Investor Index(R) and all of its components, including the Spectrem Millionaire Investor Index(R), is available for purchase at http://www.spectrem.com or by contacting Spectrem Group, 641 W. Lake Street, Suite 402, Chicago, IL 60661, (312) 382-8284.

About Spectrem Group

Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets. It integrates proprietary research with expertise in building business, marketing and M&A strategies. Spectrem professionals have held senior management positions at leading global companies. Through a collaborative process, they create and implement practical and profitable strategies that fit the cultures of client firms.

Catherine S. McBreen and George H. Walper, Jr., Spectrem Group's Managing Director and President, respectively, are authors of the upcoming book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families," which is scheduled for publication by Portfolio in January 2008.