4 in 10 Surveyed Investors’ Allocations Unaffected by Economy


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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