This week’s AAII Sentiment Survey special question asked AAII members about the one thing they would change about the current market environment if they had a magic wand to do so. Responses were varied, though they primarily fell into one of four categories. The largest number of respondents (18%) said they would alter monetary policy or raise interest rates. This group also includes respondents who want to know how the Federal Reserve intends to end monetary stimulus. The second-largest group (17%) said they would alter Washington politics. These changes include the politicians themselves, regulations or the tax code. About 14% would change the market environment. Some would reduce current valuations, while others said they would end high-frequency trading or dark pools. Changing the pace of economic growth came in fourth, with about 9% of respondents saying they would accelerate it.
Here is a sampling of the responses:
- “Speaking selfishly, stock prices should come down to earth.”
- “Get better clarity from the Fed on how they are going to unwind quantitative easing.”
- “I’d stop the high-frequency trading.”
- “Continued improvement in real job growth.”
- “Have the Fed raise interest rates sooner.”