Trade Issues Having a Negative Impact on Outlook for Two out of Five Investors

This week’s Sentiment Survey special question asked AAII members how trade issues are influencing their outlook for stocks given the more recent headlines concerning U.S.-China negotiations as well as Brexit. More than a quarter of all respondents (28%) say trade issues are having only a minimal impact on their outlook. Nearly 23% say trade issues are having a negative impact or are otherwise not good for the stock market. An additional 15% describe trade issues as a reason to be more cautious. Four percent think trade matters could cause stocks to be more volatile, while 3% think it could create buy opportunities. Another 3% think trade matters are priced into the market.

Here is a sampling of the responses:

• “I’ve become more cautious as uncertainty continues.”
• “Not much; I think the trade issues will be resolved.”
• “They are a negative as they suggest lower trade, which should hurt global earnings.”
• “I am optimistic that a mutually beneficial deal will be achieved and that the market will respond favorably to it.”
• “I have remained fully invested and believe these issues will be resolved in time.”

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