This week’s Sentiment Survey special question asked AAII members what influence first-quarter earnings are having on their outlook for stock prices. Nearly two out of five respondents (39%) describe earnings as having a positive impact on their expectations, particularly because they signal growth. Slightly more than 28% say first-quarter earnings had little to no impact. Some of these respondents say other factors, particularly politics, are having a greater impact than short-term earnings on their outlook. Others describe earnings as being approximately equal to expectations. About 10% of respondents express concern about earnings being at or near a peak.
Here is a sampling of the responses:
- “Earnings have reinforced my view of the strength of the underlying economy and the positive effect of the tax bill.”
- “None. They came in largely as expected.”
- “I do not think second-quarter earnings will keep pace and investors will be disappointed.”
- “Minimal in comparison with the uncertainty of political and foreign influences.”
- “I’m more bullish due to strong earnings and revenues.”
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