Investors Split on How Q2 Earnings Are Affecting Their Market Outlook

This week’s Sentiment Survey special question asked AAII members what influence second-quarter earnings are having on their outlook for stock prices. Slightly more than 28% of respondents say earnings have improved their outlook for stock prices. On the other hand, nearly 23% of respondents say that they are anticipating stock prices to fall as the bull “comes to an end.” Approximately 28% say that second-quarter earnings are having little effect on their outlook for stock prices. Finally, 21% of respondents state that they are more uncertain and/or are more focused on ongoing issues such as the trade war and/or future Federal Reserve monetary policy decisions.

Here is a sampling of the responses:

• “I think the economy is strong and the bull market still has room to run. Too much gloom and doom in the market and on TV.”
• “Revisions of consumer spending are lowering the overall trajectory of the economy. I expect second-quarter earnings will fall short of expectations.”
• “Earnings were fine. I’m struggling with geopolitical issues and domestic politics.”
• “None. I’m a long-term investor and try to hold stocks with long-term growth potential.”

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