Chinese Economy Has Variable Impact on Investor Attitudes


This week’s Sentiment Survey special question asked AAII members why or why not the Chinese economy and stock indexes are impacting their six-month outlook for U.S. stocks. There was no consensus response. The largest group, 15% of responses, said that China’s problems are adversely effecting global economic growth and commodity prices. Slightly more than 13% said that China is having no or just a minimal impact on U.S. stocks, the U.S. economy or their outlook for U.S. stocks. More than 12% said that they do not invest in Chinese stocks or do not pay much attention to China. Just under 6% said that the problems in China is adversely affecting U.S. stocks, while a different group of a similar size said that the long-term outlook for China is still positive. Nearly 4% said that the problems in China are just one factor of many.

Here is a sampling of the responses:

  • “Not much. I’m in U.S. investments that have little, or no, direct involvement with the Chinese economy.”
  • “The Chinese economy is helping to push commodities prices down.”
  • “China is just one contributory factor amongst many.”
  • “China remains a powerful economy that continues to grow.”
  • “The Chinese economy will drag down the U.S. economy.”

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