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Investors Split on Sentiment Toward the Current Pace of Economic Growth

This week’s Sentiment Survey special question asked AAII members for their opinion of the current pace of economic growth. Approximately 39% have a positive view of the economy and/or expected growth, while a little over 38% have a more pessimistic view.

Those who have a positive view are pointing toward the tax cuts, change in regulations, earnings, economic indicators and a sense of optimism. Those who are negative or cautious are fretting about growth having peaked, higher interest rates, trade issues, stagnant wages and both fiscal and consumer debt.

Here is a sampling of the responses:

  • “Good for the moment. Tax reform is kicking in.”
  • “Things look good. The Fed is raising rates slowly and cautiously and the market can handle these changes. Earnings are very favorable.”
  • “Economic growth is positive, but it can be slowed by the rise in oil prices and trade negotiations.”
  • “Everyone is becoming more cautious and not willing to bet on the future.”
  • “Too early to tell the impact of the Trump tax cuts and the potential trade war.”
  • “Fueled by borrowing, so susceptible to disappearing.”

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