This week’s Sentiment Survey special question asked AAII members how second-quarter earnings have influenced their outlook for stock prices. More than four out of 10 respondents (41%) said that quarterly corporate profits have not altered their outlook. Reasons were mixed, though some said the presidential election is having more influence, while others said short-term results do not alter their long-term outlook. Slightly more than 17% said that second-quarter earnings had a positive influence on their outlook for stock prices. About 13% described themselves as being more cautious or are otherwise pessimistic about the direction of stock prices following second-quarter earnings season.
Here is a sampling of the responses:
- “Not earnings, the election!”
- “Looks like lipstick on a pig for the most part. Meeting lowered expectations is not a plus.”
- “My outlook was for very slow growth, so earnings have done nothing to change my mind.”
- “I expected slightly lower earnings overall, but for specific stocks, earnings seem to be inconsistent.”
- “Earnings have been better than expected, which caused me to reassess my position from bearish to neutral.”
Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.
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