This week’s Sentiment Survey special question asked AAII members how the stronger dollar is influencing their sentiment towards companies with international operations. More than a third of all respondents (36%) said it is having a negative impact. Several of these individual investors said the stronger dollar is creating a headwind for corporate earnings or is causing them to be more selective about which stocks they buy. About 29% said the stronger dollar isn’t having an effect. Some of these respondents said they do not invest in foreign companies or view the currency fluctuations as part of a normal, cyclical trend. Slightly more than 10% of respondents said the stronger dollar is having more of a company-specific than a broad market impact on their sentiment.
Here is a sampling of the responses:
- “It does not affect my thinking. This is just a cyclical change. Soon enough fortunes will be reversed.”
- “Makes me less likely to buy or add to [shares of companies with international operations].”
- “Guarded. Some are okay and some I would avoid.”
- “I try not to invest in international companies.”
- “[Companies with international operations are going to take hit to profits. Their share price will go down as a result.”
- “No change. I have a longer-term view.”