TIPS FOR ADVISORS - JULY FINANCIAL ATTITUDESae69b4ca54fa5a1cf6a7-4f488a5136431ee0948099bc99b086c7.r79... · 2020. 7. 28. · is impacting the financial and investment decisions made

Wealthy Investors and the Election: A Guide for Financial Advisors in 2020 - July

© Spectrem Group 20201

INTRODUCTION

During 2020, Spectrem has been monitoring the attitudes and fears of investors with the goal of informing financial advisors and providers how they should be working with their clients during this turbulent time. And what a turbulent time it has become. While the goal of the research was originally focused upon the election, it would be imprudent to ignore the impact of the pandemic, the riots, the Black Lives Matter movement and the ongoing unrest in the country which certainly is impacting the financial and investment decisions made by investors.

This month, Spectrem interviewed 436 individuals with net worth between $100,000 and $25 million.

TIPS FOR ADVISORS - JULY

1. Wealthier investors seem more likely to turn to their advisor for investment advice during this volatile time than less wealthy investors. Be sure to reach out to all of your clients regardless of wealth level.

2. The election will be perceived by investors as a key event. Make sure you prepare them for any potential volatility regardless of outcome.

3. Assisting clients in understanding the key metrics of the economy in the next twelve months may be helpful in reactivating their enthusiasm for investing.

F I N A N C I A LA T T I T U D E S

KEY CONCLUSIONS - JULY

1. There is overwhelming negativity regarding the future of the U.S. economy in the next twelve months which will influence how investors make financial decisions.

2. While Joe Biden is the preferred candidate for many, there are many Undecided voters. Investors are voting against Trump rather than for Biden’s policies.

3. Investors believe the market and the economy will do better if President Trump is re-elected.

4. Investors feel similarly about many key issues except those issues over which President Trump has expressed a strong policy.

2 © Spectrem Group 2020


Political affiliation has remained similar throughout 2020 with about a third of respondents identifying as Republican, a third as Democrats and a third as Independent. The greatest differences are based upon age with Democrats skewing younger and Republicans appearing to be older. Independent voters do not vary dramatically based upon age.

INVESTORS AND THE ELECTION02FINANCIAL AND INVESTMENT ATTITUDES10OUTLOOK16

TABLE OF CONTENTS

INVESTORS AND THE ELECTION

Copyright Notice: Copyright Notice: The content of this report is owned by Spectrem Group and is fully protected by copyright law. Our content may not be copied, reproduced, duplicated, displayed or distributed in print or electronic form, in whole or in part, without the prior written consent of Spectrem Group. Republishing the content contained in the report in any form, including without limitation the republication of company rankings for advertising, marketing or promotional purposes, is strictly prohibited.

This report in full or in part may NOT be posted to any website or released to a third party without requesting permission in writing from Spectrem Group.

36%

32%

32%

Republican Democrat Independent

March 2020

Political Affiliation

37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent

Millennials Gen X Baby Boomers WWII

By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age

36%

32%

32%


March 2020


37%

35%

29%

April 2020

36%

33%

30%

May 2020

33%

31%

34%

June 2020

35%

34%

31%

February 2020

33%

35%

32%

January 2020

19%

46%

36%

33%

31%

36%

36%

29%

36%

46%

23%

31%

Republican

Democrat

Independent


By Age



Half of investors will be voting for Joe Biden in November while a third indicate they will be voting for President Trump. Keep in mind that 17 percent remain in the Undecided or Other mode, thus potentially still making the race a 50-50 tie should these individuals choose to vote for the President.

INVESTORS AND THE ELECTION

33%

49%

15%

1%

2%

President Donald Trump

Joe Biden

Undecided

Other

I will not be voting in November of 2020

Who Will You be Voting for in

November 2020?

For those who support the President, their support has not changed in the past few months. Just over a quarter support the President no matter what, while half support President Trump’s policies but not always his commentary. The number of individuals who don’t support the President but feel the alternative is not much better has increased in recent months.

Which of the Following are Most True? (Among those who indicate they would vote for

Donald Trump or are Undecided)

27%

53%

4%

16%

29%

53%

4%

15%

28%

47%

4%

21%

I fully support thePresident and his policies

I support the President’s policies but am troubled by

his commentary at times

I support the President’s policies but am afraid to

acknowledge to others that I will be voting for him

I’m not fully supportive of the President but feel the

alternative may not be much better

Apr-20 May-20 Jun-20



Which of the Following are Most True? (Among those who indicate they would vote for Joe Biden)

70%

16%

76%

14%

6%

4%

70%

20%

5%

5%

I oppose President Trumpand his policies and will

never vote for him

I feel President Trump’s policies are taking us in the

wrong direction

I fully support the policies ofJoe Biden

I will vote for Joe Biden, eventhough I supported another

Democratic candidate


4

INVESTORS AND THE ELECTIONIndependent voters are critical to the election of 2020. Almost a third of these voters indicate they will never vote for President Trump, however, 41 percent do not like the President’s personality but do like his policies. Fifteen percent of Independents are afraid to acknowledge they support the President. Eight percent are leaning towards President Trump because they don’t like Joe Biden.

Which of the Following are Most True?

(Among those who indicate they are Undecided)

31%

38%

4%

21%

35%

1%

17%

2%

23%

26%

41%

15%

8%

11%

I will never vote for President Trump, butI am afraid the current Democratic

candidates are too far to the left

I do not like the President’s personality but support his policies

I support the President’s policies but am afraid to acknowledge to others that I

may vote for him

I do not like Joe Biden and I am morelikely to vote for President Trump

I do not like Joe Biden and I probably willnot vote

I am trending more towards Joe Bidenthan President Trump



70%

16%

76%

14%

6%

4%

70%

20%

5%

5%


never vote for him


wrong direction






70%

16%

76%

14%

6%

4%

70%

20%

5%

5%


never vote for him


wrong direction





Most of the individuals who will vote for Biden are doing so simply because they hate President Trump. Only 5 percent support Joe Biden’s policies.


70%

16%

76%

14%

6%

4%

70%

20%

5%

5%


never vote for him


wrong direction







INVESTORS AND THE ELECTIONOver 30 percent of investors support the removal of all statues that honor Confederate War Leaders and Soldiers. Democrats are much more supportive of this action than Republicans and Independents.

15%

18%

22%

17%

28%

5%

8%

17%

22%

49%

28%

28%

23%

10%

10%

12%

19%

27%

18%

24%

Strongly agree

Agree

Neither agree nordisagree

Disagree

Strongly disagree

Total

Republicans

Democrats

Independents

I Am for the Removal of all Statues and Monuments that Honor Confederate War Leaders and Soldiers

15%

18%

22%

17%

28%

5%

8%

17%

22%

49%

28%

28%

23%

10%

10%

12%

19%

27%

18%

24%

Strongly agree

Agree

Neither agree nordisagree

Disagree

Strongly disagree

Total

Republicans

Democrats

Independents

I Am for the Removal of all Statues and Monuments that Honor Confederate War Leaders and Soldiers



INVESTORS AND THE ELECTIONOnly a quarter of investors support removal of all statues and monuments that honor former slave owners such as George Washington and Thomas Jefferson. Almost half of Democrats support this initiative. Thirty-six percent of investors support changing the names of military bases named after confederate war leaders. Again, Democrats are much more supportive of this idea than Independents and Republicans. Thirty-seven percent support changing the names of public schools named after Confederate War leaders.

11%

14%

25%

21%

29%

4%

6%

15%

25%

50%

20%

28%

28%

14%

10%

9%

10%

32%

24%

25%

Strongly agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

Total Republicans

Democrats Independents

I Am for the Removal of all Statues and Monuments that

Honor Past People Who May Have Been

Slaveholders

17%

19%

19%

16%

29%

5%

9%

11%

23%

51%

34%

27%

21%

10%

9%

12%

21%

25%

16%

25%

17%

20%

20%

17%

25%

6%

10%

14%

25%

46%

37%

26%

20%

9%

7%

10%

25%

27%

16%

22%

I Am For the Changing of Military Bases Named After

Confederate War Leaders Such as Fort

Benning and Fort Bragg

I Am for Changing the

Names of Public Schools Named

After Confederate War

Leaders

11%

14%

25%

21%

29%

4%

6%

15%

25%

50%

20%

28%

28%

14%

10%

9%

10%

32%

24%

25%

Strongly agree

Agree


Disagree

Strongly disagree

Total Republicans




Slaveholders

17%

19%

19%

16%

29%

5%

9%

11%

23%

51%

34%

27%

21%

10%

9%

12%

21%

25%

16%

25%

17%

20%

20%

17%

25%

6%

10%

14%

25%

46%

37%

26%

20%

9%

7%

10%

25%

27%

16%

22%







Leaders

11%

14%

25%

21%

29%

4%

6%

15%

25%

50%

20%

28%

28%

14%

10%

9%

10%

32%

24%

25%

Strongly agree

Agree


Disagree

Strongly disagree

Total Republicans




Slaveholders

17%

19%

19%

16%

29%

5%

9%

11%

23%

51%

34%

27%

21%

10%

9%

12%

21%

25%

16%

25%

17%

20%

20%

17%

25%

6%

10%

14%

25%

46%

37%

26%

20%

9%

7%

10%

25%

27%

16%

22%







Leaders

11%

14%

25%

21%

29%

4%

6%

15%

25%

50%

20%

28%

28%

14%

10%

9%

10%

32%

24%

25%

Strongly agree

Agree


Disagree

Strongly disagree

Total Republicans




Slaveholders

17%

19%

19%

16%

29%

5%

9%

11%

23%

51%

34%

27%

21%

10%

9%

12%

21%

25%

16%

25%

17%

20%

20%

17%

25%

6%

10%

14%

25%

46%

37%

26%

20%

9%

7%

10%

25%

27%

16%

22%







Leaders

11%

14%

25%

21%

29%

4%

6%

15%

25%

50%

20%

28%

28%

14%

10%

9%

10%

32%

24%

25%

Strongly agree

Agree


Disagree

Strongly disagree

Total Republicans




Slaveholders

17%

19%

19%

16%

29%

5%

9%

11%

23%

51%

34%

27%

21%

10%

9%

12%

21%

25%

16%

25%

17%

20%

20%

17%

25%

6%

10%

14%

25%

46%

37%

26%

20%

9%

7%

10%

25%

27%

16%

22%







Leaders

11%

14%

25%

21%

29%

4%

6%

15%

25%

50%

20%

28%

28%

14%

10%

9%

10%

32%

24%

25%

Strongly agree

Agree


Disagree

Strongly disagree

Total Republicans




Slaveholders

17%

19%

19%

16%

29%

5%

9%

11%

23%

51%

34%

27%

21%

10%

9%

12%

21%

25%

16%

25%

17%

20%

20%

17%

25%

6%

10%

14%

25%

46%

37%

26%

20%

9%

7%

10%

25%

27%

16%

22%







Leaders

11%

14%

25%

21%

29%

4%

6%

15%

25%

50%

20%

28%

28%

14%

10%

9%

10%

32%

24%

25%

Strongly agree

Agree


Disagree

Strongly disagree

Total Republicans




Slaveholders

17%

19%

19%

16%

29%

5%

9%

11%

23%

51%

34%

27%

21%

10%

9%

12%

21%

25%

16%

25%

17%

20%

20%

17%

25%

6%

10%

14%

25%

46%

37%

26%

20%

9%

7%

10%

25%

27%

16%

22%







Leaders

11%

14%

25%

21%

29%

4%

6%

15%

25%

50%

20%

28%

28%

14%

10%

9%

10%

32%

24%

25%

Strongly agree

Agree


Disagree

Strongly disagree

Total Republicans




Slaveholders

17%

19%

19%

16%

29%

5%

9%

11%

23%

51%

34%

27%

21%

10%

9%

12%

21%

25%

16%

25%

17%

20%

20%

17%

25%

6%

10%

14%

25%

46%

37%

26%

20%

9%

7%

10%

25%

27%

16%

22%







Leaders



INVESTORS AND THE ELECTIONRegardless of political affiliation, most voters support developing a comprehensive immigration policy. One of the challenges to that policy is the concept of open borders, which half of Democrats support compared to only 20 percent of Republicans and 33 percent of Independents. Similarly, support for a solution to DACA is high (over 50) regardless of party while border wall funding remains controversial.

3520

52

33

Total Republican

Support of the Following Immigration Policies(0 = not at all supportive, 100 = very supportive)

72 71 7770

6959

81

67

42

68

20

37

Open Borders Comprehensive Immigration Policy

Solution for DACA Border Wall Funding

3520

52

33

Total Republican


72 71 7770

6959

81

67

42

68

20

37



3520

52

33

Total Republican


72 71 7770

6959

81

67

42

68

20

37



3520

52

33

Total Republican


72 71 7770

6959

81

67

42

68

20

37



3520

52

33

Total Republican


72 71 7770

6959

81

67

42

68

20

37



3520

52

33

Total Republican


72 71 7770

6959

81

67

42

68

20

37



Investors of all political affiliations support transparency in medical services pricing and solutions for reducing prescription drug prices. Support for Medicare for All and Single-Payer Healthcare varies dramatically based upon political affiliation. Differences of opinion are not as great for healthcare availability through private insurers subsidized by the government.

81 7986

77

46

24

72

43

Total Republican Democrat Independent

Support of the Following Healthcare Policies(0 = not at all supportive, 100 = very supportive)

82 80 8680

47

29

67

47

5646

6657

Medicare for All Transparency in Medical Services Pricing

Solutions for Reducing Prescription Drug Prices

Single-Payer Health Care

Healthcare Availability Through Private Insurers

Subsidized by Government81 79

8677

46

24

72

43



82 80 8680

47

29

67

47

5646

6657





Subsidized by Government81 7986

77

46

24

72

43



82 80 8680

47

29

67

47

5646

6657





Subsidized by Government

81 7986

77

46

24

72

43



82 80 8680

47

29

67

47

5646

6657






81 7986

77

46

24

72

43



82 80 8680

47

29

67

47

5646

6657






81 7986

77

46

24

72

43



82 80 8680

47

29

67

47

5646

6657






81 7986

77

46

24

72

43



82 80 8680

47

29

67

47

5646

6657






8



INVESTORS AND THE ELECTIONMost investors support a tax cut for middle-class families as well as a trade agreement with China. A wealth tax for billionaires is much more popular with Democrats than Republicans with Independents falling in between.

Support of the Following Tax Policies(0 = not at all supportive, 100 = very supportive)

64

44

83

67


70 69 74 70

Wealth Tax on Billionaires Tax Cut for Middle-Class Families

Support of the Following Trade Policies(0 = not at all supportive, 100 = very supportive)

63 63 65 60

Trade Agreement With China


64

44

83

67


70 69 74 70



63 63 65 60



64

44

83

67


70 69 74 70



63 63 65 60



64

44

83

67


70 69 74 70



63 63 65 60



64

44

83

67


70 69 74 70



63 63 65 60



64

44

83

67


70 69 74 70



63 63 65 60


Regardless of political affiliation, investors support a nuclear agreement with North Korea and reducing troops in the middle east.

Support of the Following War and Terrorism Policies

(0 = not at all supportive, 100 = very supportive)

61 63 6457


67 69 66 66

Nuclear Agreement With North Korea

Reducing Troops in the Middle East



INVESTORS AND THE ELECTIONInvestors generally support clean energy regardless of party affiliation but only Democrats support the green new deal. Democrats support the legalization of marijuana with Republicans much less likely to support this idea. Independents are in the middle. Forgiveness of student loan debt also varies by political affiliation. Democrats support increasing the minimum wage while Republicans are more likely to oppose it.

4428

63

42

7260

8373


Support of the Following Policies(0 = not at all supportive, 100 = very supportive)

4836

6049

Clean Energy Legalization of Marijuana Raising the Minimum Wage

53

37

74

52

3320

55

28

Forgiveness of Student Loan Debt

The Green New Deal

4428

63

42

7260

8373



4836

6049


53

37

74

52

3320

55

28


The Green New Deal

4428

63

42

7260

8373



4836

6049


53

37

74

52

3320

55

28


The Green New Deal

4428

63

42

7260

8373



4836

6049


53

37

74

52

3320

55

28


The Green New Deal

4428

63

42

7260

8373



4836

6049


53

37

74

52

3320

55

28


The Green New Deal

4428

63

42

7260

8373



4836

6049


53

37

74

52

3320

55

28


The Green New Deal

Only Democrats support reparations to blacks for past slavery. Democrats are highly supportive of Black Lives Matter. Republicans are less supportive with Independents falling in the middle.

2713

49

20



Reparations to Blacks for Past Slavery

Black Lives Matter

China Being Responsible for the Damages Done by the

Coronavirus

53

31

79

50 54

69

4350

2713

49

20




Black Lives Matter


Coronavirus

53

31

79

50 54

69

4350

2713

49

20




Black Lives Matter


Coronavirus

53

31

79

50 54

69

4350

2713

49

20




Black Lives Matter


Coronavirus

53

31

79

50 54

69

4350



Investors attitudes regarding the future have not improved since the onset of the pandemic. While more than half of Republicans believe their financial situation will be better a year from now, Democrats and Independents are not as optimistic.

FINANCIAL AND INVESTMENT ATTITUDES

Financial Situation Will be Stronger One Year From

Now Than at Present

42%

March 2020 June 2020

52%

37%

36%

Republican

Democrat

Independent

43%

June 2020 - By Political Affiliation

April 2020

41% 43%

May 2020


Now Than at Present

42%


52%

37%

36%

Republican

Democrat

Independent

43%


April 2020

41% 43%

May 2020


Now Than at Present

42%


52%

37%

36%

Republican

Democrat

Independent

43%


April 2020

41% 43%

May 2020


Now Than at Present

42%


52%

37%

36%

Republican

Democrat

Independent

43%


April 2020

41% 43%

May 2020


Now Than at Present

42%


52%

37%

36%

Republican

Democrat

Independent

43%


April 2020

41% 43%

May 2020


Now Than at Present

42%


52%

37%

36%

Republican

Democrat

Independent

43%


April 2020

41% 43%

May 2020


Now Than at Present

42%


52%

37%

36%

Republican

Democrat

Independent

43%


April 2020

41% 43%

May 2020

Concern over the impact of the coronavirus has not dissipated in recent months.

83.33

84.65

87.09

70.49

Concern about the impactof the coronavirus on the

U.S. economy

Jun-20 May-20 Apr-20 Mar-20

How Concerned Are You About the Following?(0 = “Not at all concerned and 100 = “Very concerned”)



Roughly a quarter of investors are worried about the health of their company, and political affiliation does not play a role in that concern. Age does play a role, however, most of the WWII generation – who are presumedly retired – believe things will remain the same.


14%

60%

26%

15%

62%

23%

11%

62%

27%

15%

57%

27%

Better

The same

Worse

Total

Republicans

Democrats

Independents

Over the Next 12 Months, Do You Feel the Financial Health of the Company You Work (Worked) for Will

Be Better, the Same or Worse

19%

58%

23%

20%

56%

25%

11%

58%

31%

3%

87%

11%

Better

The same

Worse


By Age

14%

60%

26%

15%

62%

23%

11%

62%

27%

15%

57%

27%

Better

The same

Worse

Total

Republicans

Democrats

Independents



19%

58%

23%

20%

56%

25%

11%

58%

31%

3%

87%

11%

Better

The same

Worse


By Age

14%

60%

26%

15%

62%

23%

11%

62%

27%

15%

57%

27%

Better

The same

Worse

Total

Republicans

Democrats

Independents



19%

58%

23%

20%

56%

25%

11%

58%

31%

3%

87%

11%

Better

The same

Worse


By Age

14%

60%

26%

15%

62%

23%

11%

62%

27%

15%

57%

27%

Better

The same

Worse

Total

Republicans

Democrats

Independents



19%

58%

23%

20%

56%

25%

11%

58%

31%

3%

87%

11%

Better

The same

Worse


By Age

will be worse in the next twelve months, especially Democrats and Independents. Overall, older investors are more likely to believe the economy will get better than younger generations. Wealth does not dramatically influence one’s feelings about the economy.

24%

23%

53%

39%

23%

39%

13%

23%

64%

19%

24%

57%

Better

The same

Worse

Total

Republicans

Democrats

Independents

Over the Next 12 Months, Do You Feel the Overall U.S. Economy Will be Better, the Same or Worse?

15%

38%

46%

20%

26%

54%

25%

20%

55%

45%

8%

47%

Better

The same

Worse

Millennials

Gen X

By Age

19%

33%

48%

21%

26%

53%

25%

19%

56%

23%

15%

62%

30%

25%

45%

13%

27%

60%

29%

35%

35%

Better

The same

Worse

$100K - $499K $500K - $999K$1MM - $2.9MM $3MM - $4.9MM$5MM - $9.9MM $10MM - $14.9MM$15MM - $25MM

By Wealth

24%

23%

53%

39%

23%

39%

13%

23%

64%

19%

24%

57%

Better

The same

Worse

Total

Republicans

Democrats

Independents


15%

38%

46%

20%

26%

54%

25%

20%

55%

45%

8%

47%

Better

The same

Worse

Millennials

Gen X

By Age

19%

33%

48%

21%

26%

53%

25%

19%

56%

23%

15%

62%

30%

25%

45%

13%

27%

60%

29%

35%

35%

Better

The same

Worse


By Wealth

24%

23%

53%

39%

23%

39%

13%

23%

64%

19%

24%

57%

Better

The same

Worse

Total

Republicans

Democrats

Independents


15%

38%

46%

20%

26%

54%

25%

20%

55%

45%

8%

47%

Better

The same

Worse

Millennials

Gen X

By Age

19%

33%

48%

21%

26%

53%

25%

19%

56%

23%

15%

62%

30%

25%

45%

13%

27%

60%

29%

35%

35%

Better

The same

Worse


By Wealth

Republicans are more likely than others to believe the U.S. Economy will be better in the next year, however, an equal number of Republicans believe it will be worse. More than half of all investors believe the economy

14%

60%

26%

15%

62%

23%

11%

62%

27%

15%

57%

27%

Better

The same

Worse

Total

Republicans

Democrats

Independents



19%

58%

23%

20%

56%

25%

11%

58%

31%

3%

87%

11%

Better

The same

Worse


By Age



Each month Spectrem tracks the confidence of investors regarding the financial markets. The index has remained the same as the previous month for both Millionaire and Affluent indices. The Spectrem Affluent Investor Confidence Index and the Spectrem Millionaire Confidence Index below indicate that investor confidence is low, but not as low as during the 2008 Recession.


-60

-40

-20

0

20

40

13

3-2

4 28

1

1510

7

-8 -6 -6

6

-1-7

-2 -31

-2

85

1

-12 -10 -10

-20

-10

0

10

20

30

J J A S O N D J F M A M J

Millionaire Index Affluent Index

2008

Spectrem Indices June 2019 to June 2020

2020



47%

39%

11%

4%

53%

33%

10%

4%

41%

43%

14%

2%

48%

39%

8%

5%

I would invest themoney

I would save the moneyin a safe type of account

I would pay off existingdebt

Some other action

Total

Republicans

Democrats

Independents

Which of the Following Best Describes the Actions You Would Most Likely Take with $100,000 Today?

44%

42%

13%

0%

40%

42%

11%

6%

51%

34%

11%

4%

53%

39%

5%

3%


I would save themoney in a safetype of account

I would pay offexisting debt

Some other action

MillennialsGen XBaby Boomers

By Age

38%

35%

22%

5%

44%

49%

4%

3%

48%

37%

11%

3%

43%

53%

2%

2%

57%

25%

14%

5%

67%

20%

7%

7%

41%

35%

12%

12%


I would save themoney in a safe type

of account


Some other action

$100K - $499K $500K - $999K$1MM - $2.9MM $3MM - $4.9MM$5MM - $9.9MM $10MM - $14.9MM

By Wealth

Despite the level of concern investors have about the economy, when given a gift of $100,000, most would choose to invest the money. Thirty-nine percent would save the money and 11% would pay off debt. Republicans are more likely to invest the money while Democrats are more likely to save the money. Neither age or net worth makes a significant difference although wealthier investors are more likely to invest than save.


47%

39%

11%

4%

53%

33%

10%

4%

41%

43%

14%

2%

48%

39%

8%

5%




Some other action

Total

Republicans

Democrats

Independents


44%

42%

13%

0%

40%

42%

11%

6%

51%

34%

11%

4%

53%

39%

5%

3%




Some other action


By Age

38%

35%

22%

5%

44%

49%

4%

3%

48%

37%

11%

3%

43%

53%

2%

2%

57%

25%

14%

5%

67%

20%

7%

7%

41%

35%

12%

12%



of account


Some other action


By Wealth

14%

60%

26%

15%

62%

23%

11%

62%

27%

15%

57%

27%

Better

The same

Worse

Total

Republicans

Democrats

Independents



19%

58%

23%

20%

56%

25%

11%

58%

31%

3%

87%

11%

Better

The same

Worse


By Age

47%

39%

11%

4%

53%

33%

10%

4%

41%

43%

14%

2%

48%

39%

8%

5%




Some other action

Total

Republicans

Democrats

Independents


44%

42%

13%

0%

40%

42%

11%

6%

51%

34%

11%

4%

53%

39%

5%

3%




Some other action


By Age

38%

35%

22%

5%

44%

49%

4%

3%

48%

37%

11%

3%

43%

53%

2%

2%

57%

25%

14%

5%

67%

20%

7%

7%

41%

35%

12%

12%



of account


Some other action


By Wealth

47%

39%

11%

4%

53%

33%

10%

4%

41%

43%

14%

2%

48%

39%

8%

5%




Some other action

Total

Republicans

Democrats

Independents


44%

42%

13%

0%

40%

42%

11%

6%

51%

34%

11%

4%

53%

39%

5%

3%




Some other action


By Age

38%

35%

22%

5%

44%

49%

4%

3%

48%

37%

11%

3%

43%

53%

2%

2%

57%

25%

14%

5%

67%

20%

7%

7%

41%

35%

12%

12%



of account


Some other action


By Wealth

47%

39%

11%

4%

53%

33%

10%

4%

41%

43%

14%

2%

48%

39%

8%

5%




Some other action

Total

Republicans

Democrats

Independents


44%

42%

13%

0%

40%

42%

11%

6%

51%

34%

11%

4%

53%

39%

5%

3%




Some other action


By Age

38%

35%

22%

5%

44%

49%

4%

3%

48%

37%

11%

3%

43%

53%

2%

2%

57%

25%

14%

5%

67%

20%

7%

7%

41%

35%

12%

12%



of account


Some other action


By Wealth

28%

37%

35%

30%

32%

37%

28%

40%

31%

24%

39%

37%

I would have an advisor makethe best investment decision

for me

I would consult an advisor,but make my own decision

I would make a decision onmy own without consulting an

advisor

TotalRepublicans

Democrats

Independents

If You Were In A Position to Invest $100,000, How Likely Would You Be to Use a Professional Financial Advisor to Assist You?

25%

52%

23%

26%

40%

33%

31%

31%

38%

21%

39%

39%

I would have anadvisor make thebest investmentdecision for me

I would consult anadvisor, but make my

own decision

I would make adecision on my own

without consulting anadvisor


By Age

30%

38%

32%

20%

40%

40%

28%

37%

35%

21%

42%

38%

34%

34%

32%

33%

20%

47%

53%

41%

6%

I would have an advisormake the best investment

decision for me

I would consult anadvisor, but make my own

decision

I would make a decisionon my own without

consulting an advisor


By Wealth

47%

39%

11%

4%

53%

33%

10%

4%

41%

43%

14%

2%

48%

39%

8%

5%




Some other action

Total

Republicans

Democrats

Independents


44%

42%

13%

0%

40%

42%

11%

6%

51%

34%

11%

4%

53%

39%

5%

3%




Some other action


By Age

38%

35%

22%

5%

44%

49%

4%

3%

48%

37%

11%

3%

43%

53%

2%

2%

57%

25%

14%

5%

67%

20%

7%

7%

41%

35%

12%

12%



of account


Some other action


By Wealth



20%

27%

4%

9%

25%

7%

5%

1%

3%

21%

26%

5%

8%

21%

9%

4%

1%

5%

20%

23%

5%

8%

28%

8%

6%

1%

2%

18%

31%

3%

9%

28%

4%

3%

1%

2%

Individual stocks

Stock mutual funds

Individual bonds

Bond mutual funds

Cash vehicles like bankaccounts or money…

Real estate, includingproperty or real estate…

Annuities or cash valueinsurance policies

Alternative investmentslike hedge funds

Other

Total

Republicans

Democrats

Independents

How Would You Divide $100,000 Among the Following?

Political affiliation makes little difference in how investors would invest. Roughly a quarter would choose stock mutual funds, 20 percent would choose individual stocks and a quarter would choose cash vehicles.

20%

27%

4%

9%

25%

7%

5%

1%

3%

21%

26%

5%

8%

21%

9%

4%

1%

5%

20%

23%

5%

8%

28%

8%

6%

1%

2%

18%

31%

3%

9%

28%

4%

3%

1%

2%

Individual stocks

Stock mutual funds

Individual bonds

Bond mutual funds

Cash vehicles like bankaccounts or money…

Real estate, includingproperty or real estate…


Alternative investmentslike hedge funds

Other

Total

Republicans

Democrats

Independents

How Would You Divide $100,000 Among the Following?




It would be expected that due to the volatility of the market that most investors would use an advisor to help them invest money in today’s environment, but that is not necessarily true. Just short of a third would rely entirely upon an advisor to invest a mythical $100,000 but 37 percent would listen to an advisor and make the decision on their own. Thirty-five percent would not use an advisor at all. Political affiliation does not make much of a difference in whether or not to use an advisor, however, younger investors are more likely than others to listen to an advisor and make the decision on their own. Wealthier investors are more likely to rely upon a financial professional.


28%

37%

35%

30%

32%

37%

28%

40%

31%

24%

39%

37%

I would have an advisor makethe best investment decision

for me

I would consult an advisor,but make my own decision

I would make a decision onmy own without consulting an

advisor

TotalRepublicans

Democrats

Independents

If You Were In A Position to Invest $100,000, How Likely Would You Be to Use a Professional Financial Advisor to Assist You?

25%

52%

23%

26%

40%

33%

31%

31%

38%

21%

39%

39%

I would have anadvisor make thebest investmentdecision for me

I would consult anadvisor, but make my

own decision

I would make adecision on my own

without consulting anadvisor


By Age

30%

38%

32%

20%

40%

40%

28%

37%

35%

21%

42%

38%

34%

34%

32%

33%

20%

47%

53%

41%

6%

I would have an advisormake the best investment

decision for me

I would consult anadvisor, but make my own

decision

I would make a decisionon my own without

consulting an advisor


By Wealth

14%

60%

26%

15%

62%

23%

11%

62%

27%

15%

57%

27%

Better

The same

Worse

Total

Republicans

Democrats

Independents



19%

58%

23%

20%

56%

25%

11%

58%

31%

3%

87%

11%

Better

The same

Worse


By Age

14%

60%

26%

15%

62%

23%

11%

62%

27%

15%

57%

27%

Better

The same

Worse

Total

Republicans

Democrats

Independents



19%

58%

23%

20%

56%

25%

11%

58%

31%

3%

87%

11%

Better

The same

Worse


By Age



26%

31%

7%

22%

10%

6%

6%

2%

38%

27%

35%

8%

23%

11%

6%

6%

4%

32%

25%

31%

9%

19%

10%

6%

7%

1%

40%

27%

29%

6%

25%

8%

5%

4%

1%

38%

Individual stocks

Stock mutual funds

Individual bonds

Cash vehicles like bankaccounts or money market…

Bond mutual funds

Real estate, including propertyor real estate funds


Alternative investments likehedge funds

I do not expect to be investing

Total

Republicans

Democrats

Independents

In the Next Month, In Which of the Following Types of Investments Do You Expect Your Household Will

Invest?

Similar to the decisions made with a mythical $100,000, investors are most likely to split their investments between individual stocks, stock mutual funds and cash in the next month.

OUTLOOK

26%

31%

7%

22%

10%

6%

6%

2%

38%

27%

35%

8%

23%

11%

6%

6%

4%

32%

25%

31%

9%

19%

10%

6%

7%

1%

40%

27%

29%

6%

25%

8%

5%

4%

1%

38%

Individual stocks

Stock mutual funds

Individual bonds

Cash vehicles like bankaccounts or money market…

Bond mutual funds

Real estate, including propertyor real estate funds


Alternative investments likehedge funds

I do not expect to be investing

Total

Republicans

Democrats

Independents

In the Next Month, In Which of the Following Types of Investments Do You Expect Your Household Will

Invest?



41%

20%

39%

75%

15%

9%

10%

23%

67%

36%

22%

42%

It will be good for theeconomy if President Trump

is re-elected

The economy will not beimpacted if President Trump

is re-elected

The economy will benegatively impacted if

President Trump is re-elected

Total

Republicans

Democrats

Independents

What Will Be the Impact on the Economy if President

Trump is Re-Elected?

What Will Be the Impact on the Economy if Joe Biden is Elected

President?

30%

28%

42%

8%

18%

75%

62%

30%

8%

23%

37%

41%

It will be good for the economy ifJoe Biden is elected President

The economy will not beimpacted if Joe Biden is elected

President

The economy will be negativelyimpacted if Joe Biden is elected

President

Total

Republicans

Democrats

Independents

OUTLOOKInvestors are more likely to believe that the impact on the economy will be better if President Trump is re-elected (41 percent) compared to if Joe Biden is elected (30 percent). Of course these views are highly skewed by political affiliation.

41%

20%

39%

75%

15%

9%

10%

23%

67%

36%

22%

42%


is re-elected


is re-elected



Total

Republicans

Democrats

Independents




President?

30%

28%

42%

8%

18%

75%

62%

30%

8%

23%

37%

41%



President


President

Total

Republicans

Democrats

Independents

41%

20%

39%

75%

15%

9%

10%

23%

67%

36%

22%

42%


is re-elected


is re-elected



Total

Republicans

Democrats

Independents




President?

30%

28%

42%

8%

18%

75%

62%

30%

8%

23%

37%

41%



President


President

Total

Republicans

Democrats

Independents

41%

20%

39%

75%

15%

9%

10%

23%

67%

36%

22%

42%


is re-elected


is re-elected



Total

Republicans

Democrats

Independents




President?

30%

28%

42%

8%

18%

75%

62%

30%

8%

23%

37%

41%



President


President

Total

Republicans

Democrats

Independents

41%

20%

39%

75%

15%

9%

10%

23%

67%

36%

22%

42%


is re-elected


is re-elected



Total

Republicans

Democrats

Independents




President?

30%

28%

42%

8%

18%

75%

62%

30%

8%

23%

37%

41%



President


President

Total

Republicans

Democrats

Independents

41%

20%

39%

75%

15%

9%

10%

23%

67%

36%

22%

42%


is re-elected


is re-elected



Total

Republicans

Democrats

Independents




President?

30%

28%

42%

8%

18%

75%

62%

30%

8%

23%

37%

41%



President


President

Total

Republicans

Democrats

Independents



OUTLOOKSimilarly, investors are generally more likely to believe that the Dow will end the year higher if President Trump is re-elected instead of Joe Biden.

18%

7%

5%

6%

8%

7%

12%

10%

8%

7%

4%

5%

3%

24%

13%

8%

12%

12%

10%

8%

5%

2%

3%

0%

1%

1%

Below 20,000

20,000 - 20,999

21,000 - 21,999

22,000 - 22,999

23,000 - 23,999

24,000 - 24,999

25,000 - 25,999

26,000 - 26,999

27,000 - 27,999

28,000 - 28,999

29,000 - 29,999

30,000 - 30,999

31,000 orabove

14%

6%

6%

6%

6%

6%

12%

10%

7%

10%

7%

8%

2%

19%

10%

6%

10%

13%

9%

13%

8%

5%

3%

2%

2%

2%

Below 20,000

20,000 - 20,999

21,000 - 21,999

22,000 - 22,999

23,000 - 23,999

24,000 - 24,999

25,000 - 25,999

26,000 - 26,999

27,000 - 27,999

28,000 - 28,999

29,000 - 29,999

30,000 - 30,999

31,000 or above

Donald Trump wins 2020 Presidential electionJoe Biden Wins 2020 Presidential Election

June 2020

Anticipated 2020 Year-End Dow Jones Level

May 2020

18%

7%

5%

6%

8%

7%

12%

10%

8%

7%

4%

5%

3%

24%

13%

8%

12%

12%

10%

8%

5%

2%

3%

0%

1%

1%

Below 20,000

20,000 - 20,999

21,000 - 21,999

22,000 - 22,999

23,000 - 23,999

24,000 - 24,999

25,000 - 25,999

26,000 - 26,999

27,000 - 27,999

28,000 - 28,999

29,000 - 29,999

30,000 - 30,999

31,000 orabove

14%

6%

6%

6%

6%

6%

12%

10%

7%

10%

7%

8%

2%

19%

10%

6%

10%

13%

9%

13%

8%

5%

3%

2%

2%

2%

Below 20,000

20,000 - 20,999

21,000 - 21,999

22,000 - 22,999

23,000 - 23,999

24,000 - 24,999

25,000 - 25,999

26,000 - 26,999

27,000 - 27,999

28,000 - 28,999

29,000 - 29,999

30,000 - 30,999

31,000 or above


June 2020


May 2020

18%

7%

5%

6%

8%

7%

12%

10%

8%

7%

4%

5%

3%

24%

13%

8%

12%

12%

10%

8%

5%

2%

3%

0%

1%

1%

Below 20,000

20,000 - 20,999

21,000 - 21,999

22,000 - 22,999

23,000 - 23,999

24,000 - 24,999

25,000 - 25,999

26,000 - 26,999

27,000 - 27,999

28,000 - 28,999

29,000 - 29,999

30,000 - 30,999

31,000 orabove

14%

6%

6%

6%

6%

6%

12%

10%

7%

10%

7%

8%

2%

19%

10%

6%

10%

13%

9%

13%

8%

5%

3%

2%

2%

2%

Below 20,000

20,000 - 20,999

21,000 - 21,999

22,000 - 22,999

23,000 - 23,999

24,000 - 24,999

25,000 - 25,999

26,000 - 26,999

27,000 - 27,999

28,000 - 28,999

29,000 - 29,999

30,000 - 30,999

31,000 or above


June 2020


May 202018%

7%

5%

6%

8%

7%

12%

10%

8%

7%

4%

5%

3%

24%

13%

8%

12%

12%

10%

8%

5%

2%

3%

0%

1%

1%

Below 20,000

20,000 - 20,999

21,000 - 21,999

22,000 - 22,999

23,000 - 23,999

24,000 - 24,999

25,000 - 25,999

26,000 - 26,999

27,000 - 27,999

28,000 - 28,999

29,000 - 29,999

30,000 - 30,999

31,000 orabove

14%

6%

6%

6%

6%

6%

12%

10%

7%

10%

7%

8%

2%

19%

10%

6%

10%

13%

9%

13%

8%

5%

3%

2%

2%

2%

Below 20,000

20,000 - 20,999

21,000 - 21,999

22,000 - 22,999

23,000 - 23,999

24,000 - 24,999

25,000 - 25,999

26,000 - 26,999

27,000 - 27,999

28,000 - 28,999

29,000 - 29,999

30,000 - 30,999

31,000 or above


June 2020


May 2020



70.25

78.49

63.51

68.63

Concern about the recentriots and the overall lawand order in the United

States

Total Republicans Democrats Independents

19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence

How Much Influence Do the Current Riots and Demonstrations and Issues Surrounding Them Have on Whom You

Will Vote for in the Presidential Election?

How Concerned Are You About the Following?

(0 = “Not at all concerned and 100 = “Very concerned”)

OUTLOOKForty-two percent of investors are concerned about using mail-in ballots for the 2020 election. Republicans are much more concerned than Independents or Democrats.

21%

21%

20%

38%

35%

30%

21%

15%

13%

16%

16%

56%

14%

16%

24%

45%

Very concerned

Concerned

Not very concerned

Not at all concerned

Total

Republicans

Democrats

Independents

How Concerned Are You About Using Mail-In Ballots for the 2020

Presidential Election?

21%

21%

20%

38%

35%

30%

21%

15%

13%

16%

16%

56%

14%

16%

24%

45%

Very concerned

Concerned

Not very concerned


Total

Republicans

Democrats

Independents



21%

21%

20%

38%

35%

30%

21%

15%

13%

16%

16%

56%

14%

16%

24%

45%

Very concerned

Concerned

Not very concerned


Total

Republicans

Democrats

Independents



on a 100 point scale. Republicans are more influenced by the riots and demonstrations than Independents or Democrats.

70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





Almost half of investors (48 percent) believe the current riots and demonstrations will have an impact on their vote in November. Concerns over the rioting are rated at a 70

70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





70.25

78.49

63.51

68.63


States


19%

29%

19%

33%

24%

27%

18%

32%

18%

30%

19%

33%

17%

31%

21%

32%

Great influence

Some influence

Little influence

No influence





Documents

TIPS FOR ADVISORS - JULY FINANCIAL ATTITUDESae69b4ca54fa5a1cf6a7-4f488a5136431ee0948099bc99b086c7.r79... · 2020. 7. 28. · is impacting the financial and investment decisions made