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Investors Split on What Could Cause Stock Prices to Rise in 2018

This week’s Sentiment Survey special question asked AAII members what factors would most likely be responsible should stock prices rise between now and the end of the year. Responses varied, with the largest group (29%) crediting earnings, particularly earnings growth. A distant second was taxes, picked by 10% of respondents. Almost 9% of respondents say the economy. A nearly equal number say the interest rates, especially stable or slowly increasing rates. About 6% think an easing of trade tensions would help stocks. Other factors listed include, but are not limited to, the midterm elections, Iran and North Korea, investor sentiment and President Donald Trump.

Here is a sampling of the responses:

  • “Evidence for higher sustained earnings.”
  • “Elimination of concern over possible trade wars.”
  • “Continued improvement in the economy coupled with reduced pressure on interest rates.”
  • “Improved economy, better-than-predicted corporate results and a cooling of political issues.”
  • “Reversal of White House position on trade deals and successful resolution of Korean issues.”

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