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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