This week’s special question asked AAII members what they thought about this year’s increased initial public offering (IPO) activity. Slightly more than 30% of respondents expressed a negative viewpoint, saying it was either a sign of a market top or frothy valuations. At the other end of the spectrum, more than 17% viewed the increase in IPO activity positively. Several of these members said the larger amount of IPO activity was a sign of good economic and/or business conditions. Nearly 21% of respondents said they don’t follow or don’t invest in IPOs.
Here is a sampling of the responses:
- “It makes me cautious about the future because it might indicate frothiness.”
- “It’s an indication that we are nearing a market top.”
- “A vote of confidence for the economy. Companies feel this is a good time to be looking for investors.”
- “It’s a positive indication of business growth.”
- “Couldn’t care less. Never invested in an IPO and probably never will.”