A Third of Investors Expect to Hold Their Allocations Steady This Year


Last month’s Asset Allocation Survey special question asked AAII members what allocation changes they expect to make this year. Responses were mixed. Almost one out of three respondents (32%) do not plan to make any change or will simply rebalance their portfolios as needed. Slightly more than 19% intend to increase the amount of cash they hold, many in anticipation of hoping to buy stocks at a lower price. About 14% intend to boost their allocation to equities while a little under 14% say they will add more bonds or bond funds. Approximately 8% say they will hold more income-producing securities, be they dividend stocks, bonds or real-estate investment trusts (REITs). Several respondents say their intentions are dependent on how the stock market performs or what happens with interest rates.

Here is a sampling of the responses:

  • “I hope to increase my percentage allocation to bonds.”
  • “I am sensing a bear market and am beginning to reduce my equity holdings and put more into bonds.”
  • “Increased my cash position as I expect the equity market to be down by the end of the year.”
  • “Depends on the market; hopefully less cash.”
  • “More cash into stocks. Buying on opportunities for long-term holdings.”

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