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Tech Sector Overvalued, Says One in Three Surveyed Members

This week’s Sentiment Survey special question asked AAII members what sectors or segments, if any, they think are excessively overvalued right now. Nearly one of out every three respondents (31%) said that technology (particularly the largest tech companies) is overvalued. Nearly 19% of respondents view the entire market, or at least most sectors, as having too high of a valuation. Conversely, about 11% don’t think any particular sector is overvalued. Nearly 8% think financials are overvalued. Almost 6% view health care as being too pricey and 6% say the real estate sector’s valuation is too high. Other sectors mentioned include automotive, consumer staples and industrials. Some respondents listed more than one sector.

Here is a sampling of the responses:

  • “Fab 5 in technology, and the NASDAQ in general. ‘Dot-com-itis’ appears alive and well.”
  • “I don’t think anything is excessively valued.”
  • “The whole market would seem to be at peak and fragile if the economy does not grow faster.”
  • “It’s not so much sectors I find overvalued as it is specific stocks in which I am interested.”
  • “Virtually all segments are ahead of themselves right now based on Trump’s promise of a major tax cut.”

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

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