This week’s Sentiment Survey special question asked AAII members how the market’s lack of volatility this year has affected their sentiment toward stocks. Respondents were split. Approximately 44% described themselves as being cautious or feeling nervous about a forthcoming drop in stock prices. Many of these respondents do not expect the current low level of volatility to last. The second largest group, representing 42% of respondents, says the lack of volatility isn’t impacting their outlook. Some of these respondents describe themselves as not being swayed by volatility or being long-term investors. Just under 12% are encouraged by the lack of volatility.
Here is a sampling of the responses:
- “It has made me more concerned about a forthcoming correction, which is way overdue.”
- “None. I’m a long-term investor.”
- “My stock allocation has not changed.”
- “It makes me more willing to buy individual stocks.”
- “Nervous. It appears the market is betting on legislative outcomes that are becoming likely to occur.”
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