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More Than 40% of Surveyed Investors Unaffected by Rate Hike

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This week’s Sentiment Survey special question asked AAII members what impact the possibility of additional rate hikes occurring in 2017 has on their market outlook. Slightly more than two out of five respondents (42%) say that the prospect of future rate hikes either doesn’t impact their outlook or only has a minor influence. Many of these respondents say that the impact will be minor if tightening is done in a gradual manner. Nearly 16% of respondents welcome the prospect of additional rate hikes. They view such actions as a sign that economic growth is accelerating. Just under 14% expressed a negative view, with several saying that such hikes could hurt stock prices.

Here is a sampling of the responses:

  • “As long as the rate hikes are small and gradual, I see little impact on my view of the stock market in 2017.”
  • “It’s a sign of an improving economy and a move toward normal rates.”
  • “Additional rate hikes, while needed to reward savers, will take some of the hot air out of the equity market balloon.”
  • “Prospect of lower taxes and deregulation will offset the negative effects of higher interest rates.”
  • “It depends on how many hikes occur.”

Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.

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