Millionaire investors believed that the U.S. economy will not be growing for the next 10 years, this is according to Fidelity Investment's annual Millionaire Outlook Confidence Index. Specifically, sentiment about the nation's economy sunk 14 points from a year ago to 7 points in the last 12 months.
The report said it is the lowest level since 2006 when Fidelity conducted the study for the first time. Of most particular concern is that millionaires no longer believe that the US economy will attain longevity at least for the next decade. The report said the negative sentiment overcomes the positive outlook on the increasing job opening. The investors' negative view of the economy stays even with stocks hitting record highs.
The report did not specify the reasons why skepticism is dominating a positive outlook. What the report mentioned was that the same millionaires are no longer excited about the prospects in their finances. Also, they are nervous about stock unpredictability, security over their retirement savings, and their ability to manage debt.
Fidelity Investment's annual Millionaire Outlook Confidence Index polled 2,026 investors comprised of 1,102 millionaires and 924 investors which the firm categorized as the "millionaires of tomorrow." The index used for the survey includes the stock market, real estate, consumer buying power, and business spending.
Interestingly, a survey from the same firm said Americans are positive that they can improve their future financial situation by reducing personal debt in the coming years. They intend to prioritize paying off debt in the coming year.
The study, Fidelity Investments 2020 New Year Financial Resolutions Study, found that as much as 82% of Americans are positive that they can attain a better financial position. An increasing number of Americans or 67% also promised to spend wisely in 2020. They promised to save, invest, manage debt, be mindful about budgeting, and plan their retirement starting 2020. Last year, only 61% of those who were surveyed promised to improve their financial standing.
Of what could be another irony is a recent opinion expressed by Goldman Sachs' Chief Operating Officer John Waldron. On Tuesday, he said that the recent monetary policy and resilience of the American consumer is driving the U.S. economy upward once again.
Waldron said the resiliency shown by American consumers is making the U.S. markets and economy flexible as well. He added that American consumers are contributing about 70% of GDP growth. The GDP growth offset the bleak outlook of the previous quarters, Waldron added.
