This week’s Sentiment Survey special question asked AAII members what they thought about the stock market’s return to a relatively low state of volatility. Responses were mixed. (The S&P 500 index has gone approximately 50 days without closing up or down by 1% or more.) Nearly two out of five respondents (37%) do not think the current calm will continue. Many of these respondents say they expect volatility to jump after the November midterm elections. Slightly more than 14% of respondents describe themselves as being pleased with the low level of volatility. Approximately 9% are either surprised by the current calm or say they don’t understand why the markets are so calm given the macro backdrop. About 6% say volatility does not impact their investing decisions. A small group of respondents indicate that they do not perceive the market as currently being calm.
Here’s a sampling of the responses:
- “I doubt this will persist.”
- “I don’t think much about volatility because I am a long-term investor.”
- “It could be the calm before the storm. I think the midterm elections will have an impact.”
- “I’m surprised given all the political and trade issues going on.”
- “Low volatility is always good in my opinion.”
If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership