One-Third of Investors Have Not Changed Their Market Outlook Over Relief Bill Impasse

This week’s Sentiment Survey special question asked AAII members what impact the impasse over a new coronavirus relief bill is having on their outlook for stocks. One out of three respondents (33%) say that the impasse over a new coronavirus relief bill is having little to no impact on their outlook for stocks. This compares to 22% of respondents who say that the impasse is having a negative impact on their outlook for stocks. An additional 14% of respondents say that they are more concerned about the impact of the upcoming election on the market.

Other factors listed as affecting individual investors’ outlook include market volatility (named by 13% of respondents), the long-term impact of debt (named by 8% of respondents) and the possibility of another market correction (named by 7% of respondents).

Here is a sampling of the responses:

• “The continued impasse and possible lack of agreement before the election will cause me to significantly reduce my holdings. I expect (as has often been historically the case) a substantial sell-off in October.
• “I don’t believe that the impasse has any effect on the market. Investors should be aware by now that the government is dysfunctional.”
• “Little impact. Of more concern to me is there being a coherent federal leadership in addressing the pandemic, the disconnect between the haves and have less and addressing economic and ‘people’ effects of the pandemic.”
• “In the short term, I expect major indexes to react negatively. Once additional stimulus is in place and there is further definition on dealing with the coronavirus, upward movement will reoccur into next spring, regardless of which party wins in November.”

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