This week’s Sentiment Survey special question asked AAII members why it does or not matter if the major U.S. stock indexes rise above their record highs in the near term. Almost half of respondents (49%) said it does not matter. Many of these members said they invest for the long term and/or are more focused on their allocations. Several others said factors such as the economy and the presidential election are having a bigger influence on their outlook. One-third (33%) of respondents said a new high would be a positive event and should lead to higher prices. A small number of respondents (6%) think such a move would confirm their belief that stocks are overpriced and would increase the odds of a new decline occurring.
Here is a sampling of the responses:
- “It does not matter. I just look for continued growth in the economy and among companies.”
- “Record levels do not matter. They are regularly broken as stocks go up.”
- “A rise above prior highs would confirm the continuation of a bull market.”
- “Does not matter. Dollars invested in the market are much longer-term-oriented.”
- “It matters to me because I believe valuations are much too high and unsustainable.”
Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.
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