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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (55500)	8/28/2006 6:04:34 PM
From: RealMuLan	Respond to of 116555

Investor optimism in August doldrums By Aaron Siegel August 28, 2006 investmentnews.com Investor optimism has fallen to to a new low for the year, dropping two points to 53, marking a 40-point decline since January, according to the UBS/Gallup Index Investor Optimism released today. The August decrease was attributed to worry over high energy prices, a weakening residential real estate market and rising global tensions. - Advertisement - Ninety-four percent of the investors polled said that they viewed energy prices as harmful to the investment climate, while many said they anticipate that gas prices will continue to rise in the next three months. "Although we have seen gasoline prices stabilize recently, investors are clearly worried about the implications of international tensions on future energy prices." The state of residential real estate market was also on the minds of those investors polled: 56% of respondents rated it as being either "only fair" or "poor." An additional 70% of investors believe that conditions in the real estate market are worsening, up from 63% in June. "The drop in confidence in the real estate market reflects the economic data for that sector and suggests that investors are feeling the pinch in their local markets," said Anne Briglia, Senior Fixed Income Strategist, UBS Wealth Management Research, in a statement. The majority of investors (85%) voiced concern about an uneasy geopolitical environment, saying they believe current international tensions are hurting the investment climate An additional 75% said they are concerned about the federal budget deficit and 72% remain concerned about the danger of increased inflation. The Personal Dimension Index, which measures investors' outlook on personal investments, fell three points to 54 from 57 for the month. The UBS/Gallup Index of Investor Optimism is conducted on a monthly basis by Zurich, Switzerland-based UBS AG and had a baseline score of 124 when it was established in October 1996. The index polled 802 households across the U.S. with investments of $10,000 or more between August 1 and 17