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Investors Split on Actions to Take During Increased Volatility

This week’s Sentiment Survey special question asked AAII members what actions they have taken, if any, in response to the increased volatility that the market has experienced since late September. Approximately 37% of respondents did not take any actions, with several describing themselves as long-term or buy-and-hold investors. A nearly equal number of respondents (36%) say they sold stocks. Some of these respondents purposely reduced their exposure to equities, while others used the drop as a reason to pull out of underperforming or otherwise disappointing stocks. Just 21% say they bought stocks or entered orders to do so.

Here is a sampling of the responses:

  • “Sold three losing stocks and nothing else. I’m taking the big swings in stride.”
  • “I have strengthened my resolve to ride it out and reminded myself that my investments are for the long term.”
  • “I have been selling and am waiting until I see a confirmed uptrend in the market.”
  • “Bought new shares and added to existing shares. It’s a good buying environment.”
  • “I rebalance quarterly and let it ride.”

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