Fifty-Seven Percent of Investors See Risk of Market Drop


This week’s Sentiment Survey special question asked AAII members to share their thoughts about the current duration of the bull market, which is marking its eighth birthday today. More than half of all respondents (57%) believe the market is at risk of falling. Several of these respondents are anticipating a correction (a drop of at least 10%). Others cited politics or valuations. Conversely, nearly 18% of respondents think the bull can continue to run. Several of these respondents cited optimism about the Trump administration as the reason, while others think stock prices will continue to rise as long as earnings do.

Here is a sampling of the responses:

  • “It’s way overdue for a correction.”
  • “It will continue if Trump’s tax policies are followed.”
  • “Will continue upward after a near-term 10% pullback.”
  • “It is getting very long in the tooth.”
  • “Pretty long in the tooth. Valuations (forward earnings) are becoming too rich.”

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