Rate Hike Fails to Shake 60% of Surveyed Investors


This week’s Sentiment Survey special question asked AAII members how the FOMC’s raising of interest rates has impacted their market outlook. Approximately 60% of respondents said that the rate hikes are having no or very little impact on their outlook and/or their portfolio decisions. Many of these respondents said that last week’s announcement by the Federal Open Market Committee was expected or otherwise already priced in. Several others said interest rates still remain too low. About 19% have a positive view, saying that the tightening cycle expresses confidence in the economy and/or is a sign of economic growth. Just 6% view the rate hike as a negative for stocks.

Here is a sampling of the responses:

  • “Rising interest rates have been expected for quite some time, so no surprise.”
  • “I want to purchase some higher-yielding CDs, so waiting for that. No impact on my market outlook.”
  • “Not at all. I view it as a return to normal.”
  • “Confirmed improving economy. Slow raises should be of benefit to equity growth.”
  • “It’s made my outlook, short-term, a bit more bearish as the market digests what looks like three interest rate hikes.”

Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.

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