Global Events Negatively Impacting Outlook for 42% of Investors

This week’s Sentiment Survey special question asked AAII members what impact geopolitical and international events are having on their outlook for stocks. Slightly more than two of out five respondents (42%) describe these events as having a negative impact. Many specifically point to the threat of a trade war and/or the uncertainty over the president’s policies. Nearly 29% say international and geopolitical events are not impacting their outlook, while 9% describe the events as having a short-term but not a lasting impact. About 7% describe geopolitical/international events as providing buying opportunities.

Here is a sampling of the responses:

  • “Instability is a scary thing. I hope for the best, but I am starting to prepare for the worst.”
  • “May be good for energy stocks, but it may lead to more volatility for the rest of stocks. Still, earnings and fundamentals should rule over these events.”
  • “Somewhat positive as I can invest even more when everyone else is getting scared.”
  • “Making me more concerned about the economy and the stock market.”
  • “I try to limit my reactions to geopolitical/international events since they often end up being less important in the long term.”

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