A respected survey reported has discovered that more than one-third of millionaires are too wary of the current stock market environment to invest.
The Spectrum Millionaire Investor Confidence Index in May fell 17 points from April, the biggest month-to-month drop ever recorded by Spectrem Group.
The measure of millionaire confidence in the economy and markets found 39 percent of millionaires plan to avoid investing in the coming month – the highest percentage since December 2013, CNBC reported.
The main reason for the drop in the index: politics and the turmoil surrounding the Trump administration.
"Even though the stock market remains at near-record high levels, millionaire investors are becoming increasingly cautious," said Spectrem President George H. Walper Jr. told CNBC.
"This is likely due to growing concerns about the weakening political position of President Trump given recent controversies, the declining likelihood of substantive tax reform in the near-term, as well as concerns about the recently submitted proposed federal budget," he said.
The largest drop in the survey came among Republican millionaires.
"The Republican millionaires may believe they delivered the House, Senate and Presidency and still nothing is getting done, which ultimately may impact their economic views. They are worried that government dysfunction, which they identify as the most significant threat to the economy, could jeopardize both health care and the important tax cuts that may be fueling part of the stock market surge," he said.
Meanwhile, Trump's plan to cut the corporate tax rate to 15 percent would be a tailwind for profitability at Warren Buffett's Berkshire Hathaway Inc., but won't fundamentally change how its business units operate, Buffett said.
“The deferred taxes that are applicable to unrealized gains on securities would all be applicable to us," Buffett said during Berkshire's annual shareholders meeting, Reuters reported.
"We have $90 or $95 billion in gains, and our owners, dollar for dollar, will participate in that ... If the rate were to drop 10 percent, that $9.5 billion is real."
Buffett, a Democrat who vocally supported Hillary Clinton's unsuccessful White House candidacy, added that the impact of lower corporate taxes would not translate into higher profits across all of Berkshire's many dozens of businesses.
To be sure, many respected economic voices have also urged caution about the liberal mainstream media's biased smear-campaign attacks on Trump, which have hindered full implentation of the president's plans to truly "Make America Great Again."
David Horowitz, author of the best-selling book "Big Agenda: President Trump's Plan to Save America," has told Newsmax TV that the market rally since Republican Donald Trump won the election has more room for gains as the president pushes his pro-business agenda.
“There's more upside. Starting from when he was president-elect he started this stock market boom,” he recently told “The Income Generation Show.”
“I don't think Trump's agenda is going to be stopped in its tracks. What people forget, I mean, it's all this inside-the-beltway chatter, all of it hysterical. The anti-Trump forces are truly deranged. You can't forget how he resonates with the people,” Horowitz said on "The Income Generation," which airs on Newsmax TV every Sunday at 10 am ET.
Meanwhile, veteran financial guru and former Ronald Reagan adviser Larry Kudlow is urging any impatient investors to just give Trump a chance to fully enact his strategies to reform healthcare, spark economic growth and redesign the tax system.
After all, Trump has been in office a relatively short time and has inherited a mountain of problems from the past two decades. “He's trying to fix a lot of problems that have gone unfixed in the last 20 years,” Kudlow explained to CNBC.
Trump “still wants tax reform and healthcare reform. Those are big issues for him.” the Newsmax Finance Insider said. “Give him a chance,” said Kudlow, who advised the Trump campaign on economic issues.
(Newsmax wires services contributed to this report).
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