Investment Strategy Strong in Real Estate and Equities for 2011
A new TNS survey shows a significant increase in confidence among affluent investors. 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 the mid-crisis low of 81 in October, 2008.
Despite only modest economic and job growth, affluent investors were feeling more confident about how their own investments and the broader U.S. stock market will perform over the next six months.
“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,” noted 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%), commodities (11%) and real estate (10%). But fixed rate investments still attract the greatest interest (19%).
TNS Investor Confidence Index
The TNS Investor Confidence Index is a product of TNS’ Affluent Market Research Program. The index is a composite measure of confidence based on investor expectations for the next six months. The most recent measure is based on a survey conducted online September 29th – October 25th, 2010. The statistics cited here reflect the answers of 3,936 respondents who had total investable assets of $500,000 or more. TNS’ Affluent Market Research Program has been a leading source of market intelligence on the upscale investor and the savings/investment marketplace since 1981.