Investors’ Shifts in Investing Strategies


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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