International Events Negatively Affecting Two out of Five Investors’ Outlook

This week’s Sentiment Survey special question asked AAII members what impact geopolitical/international events are having on their outlook for stocks. Slightly more than two out of five respondents (43%) say international events are having a negative impact or otherwise are causing them to be more cautious. An additional 8% say they are planning on reducing their exposure to foreign markets. Approximately 26% say international events are not influencing their outlook for stocks. Nearly 10% of respondents describe themselves as optimistic, with some expecting a trade deal to be reached or for the U.S. stock market to not be affected by international issues.

Here is a sampling of the responses:

• “Not much. There is always something going on.”
• “Trade battles and higher tariffs lead me to believe that the economy, earnings and the value of stocks will fall.”
• “I have been weary of the global economy, but the recent European Central Bank (ECB) activity is encouraging.”
• “It’s apparent to me that tariff contests are going on too long and should soon cause a slowdown in international trade.”
• “The outlook for Europe and developing nations is cloudy. Cutting exposure.”

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