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China Having Little Impact on Investor Sentiment

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This week’s Sentiment Survey special question asked AAII members how big of an impact news and data about China is having on their outlook for the U.S. stock market. Almost two-thirds of respondents (64%) said that China is having either no impact or just a small impact. Among the reasons given were a mistrust of the data about the Chinese economy, a sense that China’s economy does not directly affect the health of the U.S. economy and a perception that sentiment about China only has a short-term impact on U.S. stocks. About 27% of respondents said China has a big impact, particularly on revenues and earnings for U.S. corporations.

Here is a sampling of the responses:

  • “Somewhat, in particular for my commodity-based stocks.”
  • “A small impact. You can never trust China. China is a big market, but not an efficient one.”
  • “China’s buying power as it relates to its economy cannot be ignored.”
  • “Little long-term impact. China bulls and bears pay too much attention to the country.”
  • “Not too much. I think earnings of U.S. companies and overall economic growth will have a greater impact.”

Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.

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