Members Stay the Course Through Sentiment Shifts


This week’s AAII Sentiment Survey special question asked AAII members how much changes in sentiment towards the stock market impact their portfolio decisions. Approximately 33% said changes in sentiment have no impact and an additional 35% said that sentiment changes have not much or very little impact. Adherence to a long-term investment strategy was the most common reason given as to why. Some respondents said that they focus on other indicators. Slightly more than 17% of all respondents said they consider sentiment when making portfolio decisions, with several saying that they use it as a contrarian indicator.

Here is a sampling of the responses:

  • “I don’t follow changes in sentiment, only my own.”
  • “Little impact to my portfolio decisions as I am a long-term, buy-and-hold investor.”
  • “None. I stick to my plan in good times and bad.”
  • “Not too much when positive, but it helps identify bottoms when extremely negative.”
  • “Large shifts in the AAII surveys get my attention and motivate me to review my portfolio allocations.”

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