High Net Worth Investors’ Confidence in the Future of the U.S. Economy Declines for the Second Straight Month

October 5, 2021

Economic Outlook

Phoenix Wealth & Affluent Monitor Economic Optimism decreased significantly among High Net Worth investors in September while a two-month decline in Economic Optimism ended among Mass Affluent investors. HNW Economic Optimism decreased from 62% in August to 54% in September while Economic Pessimism increased to 40% from 32% in August, increasing for the second time in as many months. The erosion in optimism for HNW respondents marked the largest single-month decrease for this audience since May 2021, while also reaching its lowest overall point since February 2021. Among Mass Affluent investors, September ended a two-month skid where Optimism had decreased from 64% in June to 54% in August, but now rebounds slightly to 55% in September. Economic Pessimism, however, has gradually trended upward since June, reaching 38% in September for Mass Affluent – the highest level of pessimism for these investors since January 2021.

Investing Outlook

The Phoenix Wealth & Affluent Monitor Investment Outlook increased slightly among Mass Affluent investors, from 38% in August to 41% in September, reaching the highest point since February 2020. Investment outlook among HNW remained relatively unchanged from August, with those claiming that will increase their investments decreasing from 42% to 41% in September and those claiming that will decrease their investments increasing from 3% to 5%.

Perspective

Despite fluctuations in Economic Optimism, over one-half of Mass Affluent and High Net Worth investors (55% and 54%, respectively) remain optimistic about the direction of the U.S. economy. Similarly, around 4 in 10 of all affluent investors see themselves increasing their investments over the next three months, with only 5% claiming that they will decrease their investments over the same time period. Although the slight majority of Mass Affluent and High Net Worth investors remain optimistic about the economy, recent downward trends in Phoenix Wealth & Affluent Monitor Economic Optimism across both segments marks a potentially growing development and manifestation of waning confidence in the political climate, along with the uncertainty of weaker month-over-month stock market performance.