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Stronger Dollar Negatively Influencing Some Investor Attitudes

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.”
 

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