Majority of Investors Expect Market to Rise in 2018

Last week’s Sentiment Survey special question asked AAII members how big a percentage gain or loss the S&P 500 will realize in 2018. Nearly two out of five respondents (37%) expect the large-cap index to rise between 6% and 10%. An additional 13% of respondents predict the S&P 500 will realize a gain of between…

 

1 in 3 Surveyed Not Postponing Investment Decisions Until After Election

This month’s Asset Allocation Survey special question asked AAII members what, if any, investment decisions they are postponing until after the outcome of the election is known. Slightly more than one out of three respondents (35%) said they are not postponing any decisions. Many of these respondents said they are following long-term strategies or are…

 

Majority of Investors Believe Brexit Will Happen, But Won’t Impact Investment Strategy

The global markets were caught somewhat off guard to the June 23 vote in the U.K. to leave the European Union. In the days that followed, stock markets around the globe first retreated strongly only to rebound, nearly erasing the “Brexit” losses. While most long-term investors consider short-term volatility due to headline risk as mere…

 

Investors Have Varied Definitions of Risk

Risk plays a pivotal role in investing, yet a universal definition is elusive. Merriam-Webster defines risk as: the possibility of loss or injury someone or something that creates or suggests a hazard the chance of loss or the perils to the subject matter of an insurance contract; also the degree of probability of such loss…

 

Over Half of Surveyed Investors Agree With The Fed’s Rate Decision

This week’s Sentiment Survey special question asked AAII members whether the Federal Open Market Committee was correct in keeping interest rates unchanged at its June meeting. More than half of respondents (56%) said the Fed was correct not to raise rates. Slow domestic economic growth and global uncertainty—including today’s Brexit vote—were the primary reasons given…

 

Overwhelming Number of Individual Investors Think Federal Reserve Has Too Much Power

Last week’s AAII special question asked how much power individual investors feel the Federal Reserve has over boosting the U.S. economy and the stock market. In all, 439 members responded. Among those that addressed whether the Federal Reserve has too much or too little power (75 in all), an overwhelming percentage–97.3%–feel that the Fed has too…

 

4 in 10 Surveyed Largely Unaffected by Oil Prices

This week’s Sentiment Survey special question asked AAII members how oil prices are affecting their outlook for the stock market. Slightly more than four out of 10 respondents (42%) said oil prices were not having an impact or were only having a small impact. Some pointed to the recent stabilization in oil prices, while others…

 

FinTech Faces Education Gap in Gaining Wider Adoption

Last week’s AAII special question asked what individual investors thought was the best feature of financial technology (FinTech) such as robo-advisors. For those who do not use FinTech, we asked what was keeping them from doing so. Among the 205 respondents, 54.1% said they do not use FinTech, compared to 45.9% that do use it. For…

 

Most Investors Believe Financial Services Industry Puts Profits Over Client Interests

This week’s AAII special question asked whether individual investors believe financial services firms act in their (the investor’s) best interest. Perhaps not surprisingly, the vast majority–nearly 83%–feel that their interests are secondary to corporate profits and advisor/broker compensation. Just over 12% feel that there are some brokers and advisors that are putting investor interests first….

 

Investors Biggest Fears: Market Crashes, Loss of Capital & Government Intervention

This week’s AAII special question asked what is the biggest fear investors have. Just over 13% said their biggest fear is a market crash. Another 10% said they fear a loss of capital and a similar number said they fear the U.S. government passing legislation that would have an adverse impact on investors through higher taxes, negative…