Majority of Investors Uninfluenced by Tax Reform Prospects
This week’s Sentiment Survey special question asked AAII members how their sentiment toward the stock market is being influenced by the prospects for tax reform. The majority of respondents (56%) said it’s not influencing their sentiment. Many of these respondents clarified their response by saying they do not anticipate that tax reform will actually occur. Slightly more than 26% say the passing of tax reform, particularly significant tax reform, would boost stock prices. Approximately 5% believe that if meaningful tax reform is not passed, stock prices will fall.
Here is a sampling of the responses:
- “The probability of meaningful tax reform is vanishingly small, so it’s not factored into my thinking about investments.”
- “I don’t put much weight on anything getting done. There is so much divisiveness in politics.”
- “I am assuming no tax reform. A significant tax cut would make me more bullish.”
- “Any tax reform will be around the edges, nothing major.”
- “If tax reform should fail or continues to be delayed, a major correction will ensue.”
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