Close to a Quarter of Investors Believe Current Market Sentiment Reflects Uncertainty

This week’s Sentiment Survey special question asked AAII members for their opinion about the overall level of sentiment currently being reflected by the market. We received a variety of responses. Almost one of four respondents (22%) believe current sentiment reflects uncertainty, indecisiveness or caution. About 14% think there is too much optimism being priced in. An additional 7% describe sentiment as being optimistic. Conversely, 11% think there is too much pessimism. A similar proportion of respondents think the current level of sentiment is reasonable or about right. About 9% say sentiment is being driven by headlines, politics, trade or the Federal Reserve.

Here is a sampling of the responses:

• “Too many people being too carefully invested due to angst. This means upward potential.”
• “Overall sentiment seems right.”
• “The market seems to be treading water while waiting for something big to happen.”
• “Too much reaction to the news media and not enough focus on the fundamentals.”
• “Too optimistic and not based on facts and data.”

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