This week’s Sentiment Survey special question, which was posted at the very beginning of the survey period, asked AAII members how second-quarter earnings have influenced their outlook for stock prices. Nearly 40% of respondents said that the quarterly results did not influence their outlook, with several citing their long-term investment strategy as the reason why. An additional 7% said that other factors are more influential, such as the concerns about global economic weakness. About 9% of respondents described themselves as being more cautious or pessimistic because of second-quarter earnings. Only 5% of respondents said that corporate earnings made them more optimistic. A few members directly mentioned the recent correction instead of answering this week’s special question, though the comments were varied.
Here is a sampling of the responses:
- “One quarter’s earnings never influence my outlook for the long term.”
- “The bigger concern is the global slowdown.”
- “Earnings were okay, but the outlooks given by companies were not very comforting.”
- “Earnings were good and I am still optimistic on the economy.”
- “Not at all. The current sell-off is the primary influence on my outlook.”