This week’s Sentiment Survey special question asked AAII members what type of influence the direction of stock prices has on their six-month market outlook. More than a third (36%) said price movement does not or only minimally influences their short-term outlook. Several of these respondents described themselves as buy-and-hold investors. About 20% said other factors, including the economy and valuations, influence their outlooks. Nearly 18% said the direction of stock prices either significantly or partially influences their short-term outlook.
Here is a sampling of the responses:
- “Not very much. I’m more influenced by macro-economic factors.”
- “Not much. Buy good stocks and you’ll get good results.”
- “None. I’m a buy and hold investor.”
- “Significant. I believe prices are a relevant input.”
- “Some consideration, but not the only factor.”