This week’s Sentiment Survey special question asked AAII members for their opinion of the current pace of economic growth. Approximately 39% have a positive view of the economy and/or expected growth, while a little over 38% have a more pessimistic view.
Those who have a positive view are pointing toward the tax cuts, change in regulations, earnings, economic indicators and a sense of optimism. Those who are negative or cautious are fretting about growth having peaked, higher interest rates, trade issues, stagnant wages and both fiscal and consumer debt.
Here is a sampling of the responses:
- “Good for the moment. Tax reform is kicking in.”
- “Things look good. The Fed is raising rates slowly and cautiously and the market can handle these changes. Earnings are very favorable.”
- “Economic growth is positive, but it can be slowed by the rise in oil prices and trade negotiations.”
- “Everyone is becoming more cautious and not willing to bet on the future.”
- “Too early to tell the impact of the Trump tax cuts and the potential trade war.”
- “Fueled by borrowing, so susceptible to disappearing.”
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