Long-Term Strategies Influence Allocation Decisions for Majority of Investors


Last month’s Asset Allocation Survey special question asked AAII members whether their long-term strategy, the returns of various asset classes or the yield curve has the biggest impact on their asset allocation decisions. Two-thirds (67%) of respondents say their long-term strategy has the biggest impact. Many respondents discuss the importance of sticking to it, while others discuss their desire for dividend income. Nearly 16% say the returns of assets—particularly stocks versus bonds—have the biggest influence on their allocations. Just 8% say the yield curve is having the greatest impact on their allocation decisions.

Here is a sampling of the responses:

  • “A long-term strategy only works if you stick with it, so that is what I do.”
  • “My long-term strategy, which includes the returns of various asset classes.”
  • “The returns of various asset classes, because I want to position my portfolio to maximize its return on investment.”
  • “My long-term strategy is long-term with dividend-paying stocks. Invest and hold until results dictate a change.”
  • “As the yield curve rises, I will allocate more to bonds/bond funds and less to stocks/stock funds.”

Want to weigh in? Take the survey yourself and see results online at www.aaii.com/assetallocationsurvey

If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership.


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