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

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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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