The most recent Sentiment Survey special question asked AAII members how third-quarter earnings impacted their outlook for stock prices. Nearly one of three respondents (29%) said that third-quarter profit reports have not caused them to alter their outlook. Several of these individual investors said that they maintain a long-term focus. About 22% said earnings had a negative effect. Some said that they reduced their expectations for stock prices as a result of third-quarter profit reports, while others said that the declines in earnings could lead to a reduction in stock prices. More than 13% said that they are more optimistic, mostly because of earnings growth.
Here is a sampling of the responses:
- “Worsening earnings outlook is bound to result in lower stock prices.”
- “I’m an investor for the long haul, so one quarter’s earnings does not influence my outlook for stocks.”
- “Earnings have been better than I expected.”
- “In my opinion, flat to declining profits spells trouble ahead.”
- “I have found earnings to be an encouraging sign for future growth.”
- “They were already expected, so no influence one way or another.”
Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.
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