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AAII Members Weigh In on NASDAQ Rise

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.”
 

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