Long-Term Investors Uninfluenced by Record Index Highs

This week’s Sentiment Survey special question asked AAII members how the recent return of the S&P 500 index and the Nasdaq composite to record highs is influencing their sentiment toward stocks. Approximately one of four respondents (25%) say the recent highs aren’t having an effect. Many of these respondents describe themselves as being long-term investors or otherwise sticking to a definable strategy. Slightly more than 16% of respondents expect stock prices to continue rising. A similar percentage of respondents describe themselves as being more cautious. Nearly 14% view stocks as being overvalued and another 14% think stocks are more likely to drop than rise.

Here is a sampling of the responses:

• “I am a long-term investor and therefore my holdings are not influenced by these record highs.”
• “Makes me more cautious in buying.”
• “Good time to sell. It’s a tough time to find bargains to buy.”
• “I think stocks are overvalued and a correction is bound to happen.”
• “Still bullish. There is still plenty of skepticism and little euphoria.”

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