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NASDAQ Highs Met With Mixed Feelings

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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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