Corporate Profits Prompt Bullish Sentiment for Two out of Five Investors


This week’s Sentiment Survey special question asked AAII members what influence second-quarter earnings have had on their outlook for stock prices. Nearly two out of five respondents (38%) describe corporate profits as either giving them a reason for optimism or keeping them bullish. About 25% of respondents say second-quarter profits did not alter or influence their outlook. Approximately 8% continue to view stocks as being overvalued. Trade issues are viewed as having a bigger influence than quarterly earnings for 4% of respondents.

Here is sampling of the responses:

  • “Earnings were great, but they have not changed my opinion that P/E ratios are a little too high.”
  • “Earnings remain positive and they evoke an optimistic outlook for future growth.”
  • “Good earnings have not appeared to influence stock values very much.”
  • “Limited. I’m more concerned with trade issues and deficit spending.”

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1 Reply to “Corporate Profits Prompt Bullish Sentiment for Two out of Five Investors”

  1. Aren’t those who are optimistic about the market’s future already fully invested? If not, why not? I have been fully invested for about nine years. As the number of potential investors who are optimistic increases, doesn’t the number of people who can, and are willing to invest additional sums decrease, who are we going to sell to?

    I am not going to exit the market at this point, but my brain tells me that I should.


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