Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

U.S. Investor Optimism Rises Again, Hits 17-Year High
Gallup ^ | 09/13/2017 | Jim Norman

Posted on 09/13/2017 12:49:17 PM PDT by SeekAndFind

WASHINGTON, D.C. -- A new surge of optimism among U.S. investors has pushed the Wells Fargo/Gallup Investor and Retirement Optimism Index to its highest level since September 2000. The index, after rising in every quarter since the start of 2016, leveled off in the second quarter at +124 before rising to its current +138 in the third quarter.

U.S. Investor Optimism, 1996-2017

The latest boost in optimism pushes the index almost 100 points higher than the +40 score measured in February 2016. The 98-point hike over the past 18 months is the largest increase in the 20-year history of the index that is not a rebound immediately after a major drop in optimism.

The results come from a July 28-Aug. 6 Wells Fargo/Gallup Investor and Retirement Optimism Index survey of U.S. investors with $10,000 or more invested in stocks, bonds or mutual funds. The seven items that constitute the index include three on personal finances (meeting long-term investment goals, meeting short-term investment goals and maintaining income) and four on the economy (economic growth, the stock market, unemployment and inflation). The survey was in the field as the Dow Jones industrial average approached, then surpassed, the 22,000-point milestone for the first time.

Conduct a Survey
Use our surveys to gather customized national or global data for your research project.

Investors' Optimism About Stock Market Matches 1999-2000 Record High

One of the key factors in the robust third-quarter index is investors' growing confidence in the stock market.

(Excerpt) Read more at gallup.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: economy; investment; optimism; stockmarket; stockmarketoptimism

Sixty-one percent of investors now say it is a good time to invest in the stock market, up from 53% two years ago. Among those saying it's a good time to invest, the main reason is their belief that the market will continue to increase, mentioned by 47%. Eighteen percent say stocks are a better investment than the alternatives, and 17% see stock market volatility as a buying opportunity.

Among the 37% who do not think it is a good time to put money into stocks, 52% say the main reason is worry about a market correction.

Retiree Investors More Optimistic Than Nonretirees

Optimism has risen considerably more among retired investors this year than among nonretired investors. In the first-quarter survey, the index was similar among retirees (+124) and nonretirees (+127). Now retirees are considerably more optimistic than nonretirees, +158 versus +130. While nonretirees' ratings of the personal and economic components have moved little this year, both have risen significantly for retirees.

1 posted on 09/13/2017 12:49:17 PM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind
Investor Optimism Grows More Rapidly Among Retirees
Overall index, personal and economic components for first three quarters of 2017
Q1 2017 Q2 2017 Q3 2017
Overall index
Total 126 124 138
Nonretirees 127 121 130
Retirees 124 131 158
Personal
Total 80 83 86
Nonretirees 81 82 84
Retirees 77 85 91
Economic
Total 46 43 53
Nonretirees 45 41 47
Retirees 48 50 66
The overall index combines optimism and pessimism for both personal and economic components. The personal component includes meeting long-term and short-term goals and maintaining income. The economic component includes economic growth, stock market, unemployment and inflation.
Wells Fargo/Gallup

2 posted on 09/13/2017 12:50:23 PM PDT by SeekAndFind
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Investor optimism is a coincident indicator of the economy, meaning it doesn’t predict the future, but merely describes the present. However, since it usually takes several months to understand what’s happening (2007 wasn’t called a recession until almost 2009; 1990 wasn’t called a recession until 1992), coincident indicators are quite helpful.


3 posted on 09/13/2017 1:07:44 PM PDT by dangus
[ Post Reply | Private Reply | To 1 | View Replies]

To: dangus

Since people are generally not aware of economic measures they will see this as a positive indicator.

It kind of means we’ve probably peaked.


4 posted on 09/13/2017 5:19:42 PM PDT by Vermont Lt (Burn. It. Down.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Vermont Lt

>> It kind of means we’ve probably peaked. <<

No, If it’s peaked, we’ve probably peaked economically, but who knows if it’s peaked... it was a LOT higher in 1999.


5 posted on 09/13/2017 7:51:44 PM PDT by dangus
[ Post Reply | Private Reply | To 4 | View Replies]

To: Vermont Lt

>> It kind of means we’ve probably peaked. <<
... also, plateaus can last several years, for up to half the length of the economic cycle.


6 posted on 09/13/2017 7:52:50 PM PDT by dangus
[ Post Reply | Private Reply | To 4 | View Replies]

To: Vermont Lt

Many people don’t understand that one of the best ways to drive a stock price upwards is to lay off American workers; at least the article was clear that this is INVESTOR optimism - not WORKER optimism.


7 posted on 09/14/2017 6:02:07 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
[ Post Reply | Private Reply | To 4 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson