Last month’s Asset Allocation Survey special question asked AAII members about the biggest mistake they have made over the six-year course of the current bull market. We received a wide range of responses. Nearly 15% of respondents said that they did not hold a large enough allocation to stocks, and an additional 5% said they waited too long to buy stocks or boost their allocations. More than 8% said that they held onto too much cash. Allocating too much to bonds and bond funds was the mistake cited by 7% of respondents. About 15% said that they either invested in the wrong industry or sector (e.g. energy, gold mining, etc.) or failed to invest in the best-performing industries (e.g., biotech, health care).
Slightly more than 11% of respondents said they did not make any allocation mistakes. Many of these AAII members said they stuck to their long-term allocation strategies throughout the current bull market.