07/24/2006
Affluent investors are increasingly pessimistic.
Affluent investors are losing faith in the federal government’s handling of the economy and feeling pessimistic about the investment climate, according to a poll conducted by Citigroup’s wealth advisory businesses in June.
Citigroup found that only 32 percent of respondents are satisfied with President Bush’s management of the economy. A mere 8 percent are satisfied with Congress’ economic proficiency.
In the investment arena, only one-third of investors believe the country’s market climate is better today than it was one year ago, 11 percentage points fewer than believed so in January. Those with $1 million or more in assets have a direr outlook. Confidence in the investment climate has dropped more than 25 percentage points within that demographic since the beginning of 2006.
Respondents cite rising energy costs as the leading economic problem facing the country today. They say uncertainty over foreign oil production has darkened their overall sense of financial security and their ability to save and invest. Investors are calling for higher corporate average fuel economy standards and increased focus on ethanol and natural gas production.
The Citigroup Smith Barney Affluent Investor Poll was conducted between June 1 and 15.
—Tim Chan