This week’s Sentiment Survey special question asked AAII members what they thought about the NASDAQ rising above 5,000 for the first time since 2000. About 11% of respondents said it was basically a non-event, with some describing the move as not revealing anything about the market’s current valuation. Nearly 8% said reaching 5,000 was a positive. Six percent thought it was about time the NASDAQ returned to 5,000. Another 6% of said it will either be difficult for the NASDAQ to stay at this level or that reaching 5,000 is otherwise a reason for concern that the market is getting overpriced. A little more than 3% of respondents view valuations as being cheaper now than they were during the technology bubble.
Here is a sampling of the responses:
- “It’s about time. This time seems much more sustainable than last time.”
- “I really don’t think it was that significant.”
- “P/E ratios are realistic now, especially when compared to the rapid ascent to 5,000 in 2000.”
- “It’s been up for a long time. It’s time for a drop in the market.”
- “Would like it better if the value of money hadn’t declined over the last 15 years.”
- “A good thing.”