Investors’ Views Are Mixed on 2019 Market Sentiment So Far

This week’s Sentiment Survey special question asked AAII members how they view the overall sentiment reflected by the market so far this year. Responses were very mixed. Just under a quarter of all respondents (24%) describe investors as being either cautious or uncertain. Many of these respondents point to the unknown outcomes of trade negotiations as well as the political backdrop in Washington. Nearly 13% of respondents view sentiment as either being optimistic or somewhat optimistic. Almost 10% say investors are too pessimistic. About 12% view sentiment as being too optimistic. Conversely, 4% think sentiment is too pessimistic.

Here is a sampling of the responses:

• “I think investors are hopeful but unsure that the market will post gains in 2019.”
• “I see it as cautiously optimistic but believe the U.S. will iron out the trade issues with China and that the market will react favorably.”
• “My opinion is that sentiment still seems a bit dour when it comes to individual and institutional investors.”
• “The market is reflecting uncertainty about the future due to the political environment and slowing global growth.”
• “The rally since Christmas doesn’t appear to consider the high price-earnings (P/E) ratios across most of the market.”

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