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.”