Lack of Market Breadth Concerns AAII Members


This week’s Sentiment Survey special question asked AAII members about how concerned they are about a small number of stocks driving this year’s gains in the S&P 500 and the NASDAQ. Nearly 44% of respondents said they either concerned or very concerned about the lack of market breadth. Several viewed it as a negative signal about the market’s future direction. Slightly more than 15% said they were somewhat concerned about the lack of market breadth. Nearly a third of all respondents (32%) said they are not concerned or are only slightly concerned. Several of these members said they are either more focused on the performance of their portfolios or that they follow a long-term approach.

Here is a sampling of the responses:

  • “I believe it’s very concerning. It’s not a very good sign.”
  • “This concerns me very much. It looks like a top to the current market high.”
  • “It is a concern because it skews the results. Hard to tell what is happening elsewhere.”
  • “None at all. I focus on individual stocks and each company’s performance.”
  • “Not much breadth to the market, but being a long-term investor, I am not as concerned with short-term gyrations.”

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