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Members Weigh In on Recent Market Volatility

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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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