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4 in 10 Surveyed Investors’ Allocations Unaffected by Economy

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Last month’s Asset Allocation Survey special question asked AAII members how the current economic environment is effecting their portfolio allocation decisions. More than four out of 10 respondents (42%) said the economy was not influencing their allocation decisions or indicated that they have not otherwise altered their allocations. Many of these respondents described themselves as long-term investors, though some said they are awaiting the outcome of the presidential election. Nearly 19% said that they are holding more cash or are otherwise investing more defensively. About 12% said they purposely upped their equity allocations, particularly to dividend-paying stocks. Some of these respondents said that the low-interest-rate environment has created a lack of good alternatives to stocks.

Here is a sampling of the responses:

  • “It’s a consideration, but no change seems necessary.”
  • “Keeping more cash, as oversold market is not supported by the economy or growth in corporate profits.”
  • “Not at all. Keeping the course with my current strategy.”
  • “Taking greater risk to try earn higher yields.”
  • “It’s my age, not the climate. If I were younger, I would be aggressive all the way.”
  • “The election scares me.”

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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