This week’s Sentiment Survey special question asked AAII members what one thing about the current market environment they would change if they had a magic wand. We received a wide variety of answers, but were able to group the responses into broad categories. The largest group of respondents (21%) singled out the Federal Reserve, with many calling for either an increase in interest rates or clarity on the timing of the first rate hike. Equal numbers, about 13% per group, want a change in government policies or a change in market conditions. Those wanting a change in policies discussed the tax code, regulations (both for and against) and reducing the federal debt. Lower volatility was the most desired change in market conditions, though some members want prices to fall in order to reduce prevailing valuations. An additional 8% would like to see less short-term trading and thinking. China was cited by 9% of respondents with individual investors wanting stronger economic growth or a more freely traded yuan.
Here is a sampling of the responses:
- “Get the first rate hike over with already. It’s not as big of a deal as people make it out to be.”
- “Stop the large up and down action.”
- “I would like to see a realistic plan to balance the federal budget.”
- “Not allow China to manipulate their currency.”
- “Stabilization in crude oil prices, to that the oil industry might recover.”
- “I wish median P/E ratios were lower.”