Rate Hike Possibility Not Affecting Surveyed Investors


This week’s Sentiment Survey special question asked AAII members how the possibility of a December rate hike by the Federal Reserve is impacting their sentiment towards stocks. Nearly two-thirds (65%) of respondents said that a rate hike will have no or only very little change on their sentiment and/or portfolios. Many of these respondents view a rate hike as already being priced in. Slightly more than 14% say that a rate hike would cause them to be more negative on stocks. Nearly 12% say they would be more optimistic if the Federal Reserve raised rates.

Here is a sampling of the responses:

  • “I think the rate hike has been built into the market for a long time.”
  • “The rate hike will most likely drive down prices and create buying opportunities.”
  • “Confirms my thoughts that the overall economy is improving, and therefore it is a positive.”
  • “I am not changing my stock or bond allocations when interest rates rise.”
  • “No impact. A Fed rate hike of 25 basis points has been priced into the markets for some time now.”

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

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