This week’s Sentiment Survey special question asked AAII members how important it is that the stock market recoup all of last year’s losses within the next few months. Slightly more than one-third of all respondents (36%) do not think this is very important. Many say they take a long-term view and don’t worry about short-term moves. An additional 15% of respondents describe a full recovery occurring in the short term as being desirable, but not necessary. Slightly more than 24% of respondents say it is important for stocks to fully recover their losses in the short term. Many of these respondents say doing so will build confidence, while others say they are in retirement or believe a full recovery is important because it will raise the level from which the next drop starts. About 8% of respondents think such a recovery may not occur over the short term.
Here is a sampling of the responses:
- “Being a long-term investor, it is not important to me that the market quickly recoups last year’s losses.”
- “It doesn’t need to be within the next few months as long as it does so within a year or so.”
- “Very important. I’m 81 years old and will not have enough time to recover.”
- “I’m not that concerned about recouping all the losses quickly. A gradual rise is a better sign of strength than an exuberant market.”
- “I expect a deep correction over the next six months as earnings do not support current levels.”
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