More Than Two out of Five Investors’ Outlook Influenced by Coronavirus

This week’s Sentiment Survey special question asked AAII members which factors are most influencing their six-month outlook for stocks. More than two out of five respondents state that the coronavirus and the market’s reaction to the outbreaks are having an impact. Other factors include the upcoming U.S. presidential election, named by 21% of respondents, and corporate earnings, named by 22% of respondents. Additionally, 15% of respondents state that consumer spending levels and other economic indicators are impacting their outlook.

Here is a sampling of the responses:

• “Political uncertainties and the coronavirus, but above all, the usual overreaction of the nervous nellies on Wall Street. The so-called ‘smart money’ is rarely smart.”
• “I think earnings will improve, economic growth will continue and interest rates will remain low.”
• “U.S. political turmoil, coronavirus and Boeing’s problems.”
• “The recent sell-off(s) on the negative COVID-19 news has been fast and furious but I think the recovery will be slower as investors continue to wonder what the real situation is.”

If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership