Investors’ Cautious Optimism Driven by Prospects of Tax Reform

The number of articles being written about the “dangerous” levels of the U.S. stock market is coming at an ever-increasing rate. And perhaps, for good reason. The Dow Jones industrial average has notched 42 all-time highs in 2017, the S&P 500 index has booked 37 records, while the Nasdaq has ended at a record 49…

 

Earnings Have Minimal Effect on 43% of Polled Investors

This week’s Sentiment Survey special question asked AAII members how fourth-quarter corporate earnings results have impacted their outlook for stock prices. Forty-three percent of investors said that it has no to little impact on their outlook for stock prices, or that they were focused on other economic factors rather than corporate earnings. Thirty-one percent of…

 

Majority of Investors Worry About Divergence Between Corporate Earnings & Market Levels

According to FactSet, as of the market close on August 25, over 98% of companies in the S&P 500 have reported earnings for the second calendar quarter earnings season. Of those, 71% have reported positive earnings surprises–actual earnings were above the mean estimate. For the second quarter, the blended earnings decline–reported earnings decline as well…

 

Over One in Four Surveyed Unaffected by Quarterly Earnings

This week’s Sentiment Survey special question asked AAII members how first-quarter earnings have influenced their outlook for stock prices. Slightly more than one out of four respondents (27%) said that quarterly results have not altered their outlook. Many said they don’t alter their expectations based on quarterly results, while several others pointed to other factors…

 

Market Factors Making Bigger Impact on Outlook Than Fiscal Matters

This week’s Sentiment Survey special question asked AAII members if a market-related factor or if a fiscal policy-related matter has a greater impact on their six-month outlook for stocks. Nearly two-thirds of respondents (64%) said market-related factors, particularly citing monetary policy, earnings and valuations. Less than a third of respondents (31%) said that a fiscal…