Contrarians say "Stocks are Going Up"

#market #stocks #sentiment #Bullish #bearish #contrarian

$DIA $SPY $QQQ $RUT $VAX

"The return to normalcy from the VirusCasedemic, monetary and fiscal stimulus and inflationary pressures are influencing individual investors’ outlook for stocks. Other factors include earnings, valuations and the Biden administration’s initiatives"-- Paul Ebeling

In last wk’s sampling all AAII members were asked to share their thoughts about the impact that supply shortages are having on their outlook for stocks. Below is what many said, As follows:

• “Sales are going to be limited this year and EPS will fall dramatically.”

• “Not much. I think low interest rates and strong earnings will fuel a continued bullish outlook for stocks. I do expect a correction during this time frame with a quick reversal.”

• “Transportation companies will continue to increase profits, but car companies will continue to struggle with higher costs and lower profits with reduced sales volume.”

• “Bullish. Gives pricing power to companies to raise prices.”

Of the many responses 32% of respondents say that they feel the supply shortage could have a negative impact, predicting a decrease in sales and lackluster earnings. This compares to 31% of respondents who say that it is having little to no impact. About 19% of respondents express a mixed outlook on the impact of supply shortages, implying it could help some industries but hurt others. Conversely, 10% of respondents have positive sentiments regarding supply shortages, citing recovery. About 7% of responses fell into the “other” category.

This means that stocks are going up!

Have a prosperous day, Keep the Faith!