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Investors’ Shifts in Investing Strategies

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This week’s Sentiment Survey special question asked AAII members how, if at all, they have recently adjusted their stock investing strategy. Three out of 10 respondents (30%) said they have not made any changes. More than 18% say they are targeting large-cap stocks, dividend paying stocks or stocks perceived as being more stable. An additional 11% said they are placing a bigger focus on valuation, with some of these individual investors seeking a combination of low valuations and dividend payments. Roughly 9% have increased their cash position.

Here is a sampling of the responses:

  • “I have not changed my focus. There is no point in trying to predict short-term moves in the market.”
  • “I am adding defensive stocks to my portfolio and reducing my exposure to those stocks that are highly volatile.”
  • “I’m selling winners to protect capital.”
  • “I will be looking for discounted value stocks.”
  • “Staying the course. I’m not smart enough to guess what the near-term impact of events on stock prices will be.”
 

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