Majority of Investors Believe U.S.-China Trade Agreement Will Have Short-Term Positive Impact

For this week’s Sentiment Survey special question, we asked AAII members how they think the trade agreement between the U.S. and China will impact stock prices going forward. While results of the survey show that a majority (70%) believe the trade agreement will have a positive impact, most of these respondents state that the positive impact will be short-lived unless further progress is made. On the other hand, 26% of all respondents believe that the trade agreement will not have a material impact on stock prices.

Here is a sampling of the responses: 

• “Long-term, stock prices will be up. Agriculture purchases and increased production to other industries will be a major contributor going forward.”
• “No immediate impact. I believe the impact of the trade agreement is already priced into the market. There will possibly be a negative impact going forward if China doesn’t hold up their end of the agreement.”
• “It will have a moderate impact but will only be sustained by further progress. Ultimately the market will be disappointed if progress does not continue.”
• “I have no idea. What China actually does is (or should be) more important than what is written in an agreement when determining what one is willing to pay for a specific company’s stock.”

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