1 in 3 Surveyed Plan to Increase Equity Allocations


Last month’s Asset Allocation Survey special question asked AAII members what, if any, allocation changes they expect to make during the second half of this year. One out of three respondents (33%) intend to increase their equity exposure. Several of these respondents said they would do so if stock prices were to drop by putting cash to work. Conversely, 18% intend to raise cash, with several selling stocks to do so.  Approximately 10% plan on boosting their bond exposure. More than 26% of respondents do not intend to make any changes or to make only very modest changes.

Here is a sampling of the responses:

  • “I’m looking for a significant pullback to add stocks and stock funds.”
  • “I plan to sell on any significant run-ups in the stock market and park the proceeds in cash.”
  • “None. Remain fully invested for the long term.”
  • “Move into stocks if the market tanks.”
  • “Small increases in bond fund and cash holdings relative to stock fund holdings.”

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

If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership.


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