AAII Survey: Investors React to Fed’s Decision to Slow Rate Increases

Since 2015 the Federal Reserve has increased interest rates nine times. While those investing in interest-bearing instruments have applauded these increases, others, including President Trump, have railed against the central bank increasing interest rates too quickly. Following the last meeting of the Federal Open Market Committee, Federal Reserve Chairman Jerome Powell signaled that the central bank…

 

Investors’ Views Are Mixed on 2019 Market Sentiment So Far

This week’s Sentiment Survey special question asked AAII members how they view the overall sentiment reflected by the market so far this year. Responses were very mixed. Just under a quarter of all respondents (24%) describe investors as being either cautious or uncertain. Many of these respondents point to the unknown outcomes of trade negotiations…

 

AAII Sentiment Survey: Neutral Sentiment Rises to a 7-Month High

The percentage of individual investors describing their outlook for stocks as “neutral” is at a seven-month high. The latest AAII Sentiment Survey also shows a drop in optimism and an increase in pessimism. Bullish sentiment, expectations that stock prices will rise over the next six months, pulled back by 4.8 percentage points to 35.1%. Optimism…

 

AAII Survey: Causes of Financial Stress

According to the 2015 American Psychological Association’s (APA) annual Stress in America report, nearly 90% of Americans said that their financial stress level “has either remained the same or gotten worse” with time. A recent GOBankingRates survey found that many Americans tap into their emergency savings to cover home costs, medical emergencies and even cost-of-living increases. AAII Weekly…

 

Two-Thirds of Investors Agree With Federal Reserve’s Pausing of Interest Rate Hikes

This week’s Sentiment Survey special question asked AAII members for their thoughts on the prospect of the Federal Reserve pausing its cycle of raising interest rates. Nearly two-thirds of the respondents (65%) agree with the neutral stance. Many of these respondents pointed to the lack of inflationary pressures, approve of chairman Jerome Powell’s talk of…

 

AAII Sentiment Survey: Optimism Jumps to a 3-Month High

Optimism about the short-term direction of stock prices jumped to a three-month high in the latest AAII Sentiment Survey. Neutral sentiment also rose, while pessimism plunged. Bullish sentiment, expectations that stock prices will rise over the next six months, rose 8.1 percentage points to 39.9%. Optimism was last higher on November 7, 2018 (41.3%). This…

 

A Third of Investors Expect to Hold Their Allocations Steady This Year

Last month’s Asset Allocation Survey special question asked AAII members what allocation changes they expect to make this year. Responses were mixed. Almost one out of three respondents (32%) do not plan to make any change or will simply rebalance their portfolios as needed. Slightly more than 19% intend to increase the amount of cash…

 

January AAII Asset Allocation Survey: Equity Exposure Jumps to a 12-Month High

Equity allocations among individual investors jumped to their highest level in a year in January. The latest AAII Asset Allocation Survey also shows a big pullback in cash allocations and a small decrease in fixed-income exposure. Stock and stock fund allocations rebounded by 8.8 percentage points to 71.2%. Exposure to equities was last at this level…

 

AAII Survey: How Many Brokerage Accounts Do You Have and Why?

If you want to buy and sell individual stocks and other investments, you pretty much need to have at least one brokerage account. However, one question many investors ask is whether they need or should have more than one brokerage account. Diversification is an important investment concept—spreading your money across different investment types, styles, etc….

 

Half of Investors Skeptical of Recent Rebound in Stock Prices

This week’s Sentiment Survey special question asked AAII members to share their thoughts about the recent rebound in stock prices. Nearly half (47%) of all respondents are unsure about whether it is sustainable. Many think downside volatility could return, earnings have peaked or other negative factors could play a role. A few mention the ongoing…