Members Weigh In on Recent Market Volatility


This week’s Sentiment Survey special question asked AAII members for their thoughts about the market’s recent volatility. Responses largely fell into one of four primary groups. Nearly 15% have a positive view, with several describing the recent drop in stock prices as a buying opportunity. About 21% view the downward move negatively, saying either more downside or more volatility is forthcoming. Close to 19% say they had expected a downward move or are otherwise not surprised to see volatility increase. Slightly more than 12% say the recent swings in prices are not impacting their investment decisions. A small number of respondents blamed trading programs or panicking on the part of some investors for the increased volatility and downward movement of stock prices.

Here is a sampling of the responses:

  • “This is the beginning of a long downward trend.”
  • “It had to come sooner or later. It doesn’t deter me from my long-term investing strategy.”
  • “Viewed it as a buying opportunity. Stocks on sale!”
  • “No one likes volatility, but it creates opportunities for the astute and patient investor.”
  • “It’s normal for a market that has run up this much to have a correction.”
  • “All due to traders, now aggravated by ETFs, computer-driven trades and fear.”

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