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NASDAQ Highs Met With Mixed Feelings

This week’s Sentiment Survey special question asked AAII members for their thoughts about the recent new record highs set by the NASDAQ. Responses were very mixed. Approximately 18% of respondents think that the NASDAQ will continue to rise, with the upward momentum primarily being driven by tech stocks. An additional 6% view the record highs as a positive event. Slightly more than 12% attributed the upward momentum to president-elect Donald Trump’s November victory. These respondents were largely split between those who viewed the new administration as being business-friendly and those who think the index will stabilize after tomorrow’s inauguration. Nearly 18% of respondents think the NASDAQ and/or the broader market will pull back. An additional 11% say that the index is overvalued.

Here is a sampling of the responses:

  • “An overreaction due to Trump’s victory. Will ‘normalize’ after January 20.’”
  • “It’s about time.”
  • “May have gone up too far, too fast.”
  • “Pent-up demand waiting for a business-friendly administration.”
  • “There is a lot of technology in the NASDAQ and that is the future.”

Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.

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