Last month’s Asset Allocation Survey special question asked AAII members how they would change their allocation if yields were closer to their historical average. Nearly four out of 10 respondents (38%) said they would increase their fixed-income exposure, particularly by buying bond funds and exchange-traded funds (ETFs). Conversely, 27% said they would not change their allocations. About 13% said they would by more stocks.
Here is sampling of the responses:
- “Reduce stock allocation and add bonds.”
- “I would increase my bond holdings to between 30% and 40%.”
- “I wouldn’t. I follow a long-term investment strategy.”
- “I would buy more dividend-paying stocks.”
“Less cash, more CDs.”
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.