Q2 Earnings Not Influencing Outlook for Many Individual Investors

Posted on August 21, 2014 | AAII Survey

This week’s special question asked AAII members if, and why, second-quarter earnings have impacted their six-month outlook towards stock prices. Slightly less than half of all respondents (49%) said the quarterly results haven’t impacted their outlook. Many of these members said either they are more focused on the economy or that quarterly earnings are too short-term of an indicator. Just under 23% of respondents said second-quarter earnings have positively influenced their outlook. Many of these respondents said earnings are improving. Earnings were viewed negatively or not good enough to justify current valuations by about 12% of respondents.

Here is a sampling of the responses:

  • “Earnings are not necessarily the real indicator of the underlying economy.”
  • “They are too short-term and thus unimportant in the long-term.”
  • “I believe the market is showing strength in varied sectors and the corporate profits are improving.”
  • “Earnings were good overall in the second quarter. The economy is slowly improving.”
  • “They’re still not high enough to justify the sky-high valuations.”