US Investors' Mood Broadly Confident

Editorial Staff

2 July 2018

A Wells Fargo and Gallup poll of US investors shows most of them are positive economic conditions, with their outlook only slightly falling in the latest three-month period than was the case in November a year ago.

The index score in the second quarter is 103, with investors’ 12-month outlook for economic growth, US unemployment and their personal finances remaining strong. Below the 117 level recorded in November 2017, this is nevertheless the sixth straight quarter it has registered 100 or higher. This follows a 16-year period when investor optimism was consistently below that level, Wells Fargo said.
The full range of the index over its 22-year history extends from –81 in February 2009 to 152 in January 2000.

“While investors are enjoying current market conditions and the strength of the economy, they appear to be sleeping with one eye open. They are optimistic, but they also have clear concerns about what factors could impact markets and drive volatility,” Erik Davidson, chief investment officer for Wells Fargo Private Bank, said.

The second-quarter Investor and Retirement Optimism survey was conducted from May 7 to 14 this year, coming three months after the stock market’s sharp drop in February, and shortly after the monthly US labor report was released showing unemployment falling to 3.9 percent in April, the lowest since late 2000.