Half of Investors Not Changing Their Bond Allocation During Pause in Rate Hikes

Last month’s Asset Allocation Survey special question asked AAII members how the Federal Reserve’s pause in raising interest rates is influencing what income-producing investments they buy. Slightly less than half of respondents (44%) say the decision to postpone future hikes for now is either not having any influence or has not caused them to make…

 

February AAII Asset Allocation Survey: Equity Allocations Rise

Exposure to equities among individual investors continued to rebound in February, reaching a four-month high. The February AAII Asset Allocation Survey also shows lower fixed-income and bond allocations.   Stock and stock fund allocations rose 4.1 percentage points to 67.3%. Equity allocations were last higher in October 2018 (69.5%). The increase keeps equity allocations above…

 

AAII Survey: Why Retail Investors Sell Mutual Funds

Mutual fund turnover typically measures the replacement of holdings in a mutual fund and is commonly presented to investors as a percentage over a one year period. If a fund has 100% turnover, the fund replaces all of its holdings over a 12-month period. However, you may discover that your mutual fund turnover rate is much higher than you expected. The typical managed…

 

Investors’ Opinions Split on Level of Current Dividend Yields

This week’s Sentiment Survey special question asked AAII members for their opinion of the dividend yield that stocks currently trade at. Responses were mixed. About 23% of respondents view current yields as being too low. Conversely, nearly 22% describe yields as being fair or reasonable and 14% think they are good. About 7% say stock…

 

AAII Sentiment Survey: Pessimism Falls to An Unusually Low Level

Pessimism about the short-term direction of stocks among individual investors fell to its lowest level in more than a year. The latest AAII Sentiment Survey also shows increases in optimism and neutral sentiment. Bullish sentiment, expectations that stock prices will rise over the next six months, rose 2.3 percentage points to 41.6%. Optimism was last…

 

AAII Survey: Retail Investors’ Taste for Fixed Income

In general, investing in debt instruments (bonds, bond funds, etc.) is safer than investing in stocks. That’s because debtholders have priority over shareholders–if a company goes bankrupt, debtholders (creditors) are ahead of shareholders in the line to be paid. In this worst-case scenario, the creditors usually get at least some of their money back, while shareholders often lose their…

 

One-Third of Investors Not Concerned With Market Quickly Recouping Losses

This week’s Sentiment Survey special question asked AAII members how important it is that the stock market recoup all of last year’s losses within the next few months. Slightly more than one-third of all respondents (36%) do not think this is very important. Many say they take a long-term view and don’t worry about short-term…

 

AAII Sentiment Survey: Optimism Back Above Average

The percentage of individual investors expecting an increase in stock prices rebounded this week according to the latest AAII Sentiment Survey. Neutral sentiment declined while pessimism is slightly higher. Bullish sentiment, expectations that stock prices will rise over the next six months, rebounded by 4.2 percentage points to 39.3%. Optimism is above its historical average…

 

AAII Survey: Investors React to Fed’s Decision to Slow Rate Increases

Since 2015, the Federal Reserve has increased interest rates nine times. While those investing in interest-bearing instruments have applauded these increases, others, including President Trump, have railed against the central bank increasing interest rates too quickly. Following the last meeting of the Federal Open Market Committee (FOMC), Fed chairman Jerome Powell signaled that the central bank…

 

Investors’ Views Are Mixed on 2019 Market Sentiment So Far

This week’s Sentiment Survey special question asked AAII members how they view the overall sentiment reflected by the market so far this year. Responses were very mixed. Just under a quarter of all respondents (24%) describe investors as being either cautious or uncertain. Many of these respondents point to the unknown outcomes of trade negotiations…