Nearly One-Third of Investors Believe Economy Is Uneven

In this week’s Sentiment Survey special question, we asked AAII members how they would describe the economy. Three out of 10 respondents (30%) describe the economy as uneven. An additional 17% of respondents describe the economy as uncertain while about 9% of respondents say that they think the economy is weak.

Conversely, about 12% of respondents say that they think the economy is strong and recovering. Another 23% say that their outlook for the economy is being influenced by the election and political turmoil.

Here is a sampling of the responses:

• “I believe the recovery is uneven. Those doing well are doing the best they ever have. Those doing poorly, or already out of business, are really struggling. Things are set up to be really good, depending upon a positive resolution to many issues which we are all aware.”
• “How can the economy be described as anything other than ‘uncertain,’ given how the coronavirus pandemic has affected every economy in the world and no one can be sure when it will end?”
• “The effects of the disruption due to the pandemic are uneven. Parts of the economy that deal with tech, the fact that many are working from home and the fact that many people are ordering online have been doing well. Those that require people to be in close proximity like bars, restaurants, airlines and cruise lines, not so much.”
• “Strong, the gross domestic product (GDP) is way up and business is coming back. Next year should be a lot better once everything opens up.”
• “I believe the economy is improving and that, despite rising coronavirus cases, most people have learned to live with it and do their jobs and spend their money. Travel and live entertainment are going to struggle until vaccines are widely available. I’m very concerned about limits to growth due to increasing regulation and taxes in 2021.”

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