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Two Out of Five Investors Cautious About the Dow’s 25,000 Milestone

This week’s Sentiment Survey special question asked AAII members to share their thoughts about the Dow Jones industrial average reaching 25,000 for the first time. Two out of five respondents (40%) had a cautious view of the milestone, with many saying the market has gotten ahead of itself or is otherwise due for a drop. Nearly 31% view the Dow’s crossing of 25,000 as not being a significant event. About 26% are encouraged by the milestone or say it’s a reflection of President Donald Trump’s policies and/or the tax cut.

Here is a sampling of the responses:

  • “As it keeps going farther up, the greater the correction is going to be.”
  • “Even though I am somewhat bullish, I am afraid there is a bubble that could burst sometime this year.”
  • “The new tax reform bill should continue to drive this market up.”
  • “Scary! But I am sure we will see some more potential upside over the near term.”
  • “The overall trend has been that of a rising market. I do not believe the number 25,000 means anything specific.”
  • “This is what good economic and business policy will do!”

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