Investors are optimistic about the stock market in the wake of good news about economic and corporate-earnings growth in the second half of 2016.
The Wells Fargo/Gallup Investor and Retirement Optimism Index increased in November for the third straight quarter and is at a nine-year high.
Fifty-seven percent, up from 45 percent in the third quarter, are now optimistic about economic growth while only 27 percent are pessimistic.
"Rising investor optimism and the stock market reaching all-time highs is great news to end the year, but it isn't necessarily driving investors to put their money into the markets," said Scott Wren, senior global equity strategist for the Wells Fargo Investment Institute. "Investors are more interested in the markets, but it takes time for optimism to translate to flows into the stock market."
The poll was conducted a week after President-elect Donald Trump's victory. The S&P 500, reflecting record stock prices of America's 500 largest companies, is up about 13 percent this year. The index has risen 200 percent-plus since '09, excluding dividends. Skeptics note that market swoons usually come amid exuberance.
Nearly 60 percent of investors are positive about the economy's direction; 38 percent are "bracing" themselves for an economic downturn. Most investors identify as Republican. They feel positive. Two thirds of Democratic investors are not. The Wells Fargo/Gallup Investor survey was conducted by telephone with 1,012 U.S. investors Nov. 16-20.
Neal St. Anthony
'Rumors' looming over Sherwin-Williams, Valspar deal prompt a second response
Companies are generally loathe to comment on a pending merger, especially deals that require regulatory approval. But Valspar and Sherwin-Williams have twice issued statements to quell "unfounded market rumors."