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Members’ Stock Strategies Show Little Change

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 change. Many said that they are following long-term strategies, while others said they intend to ride out the current volatility. About 16% said that they reduced their stock holdings and are now holding more cash. Nearly 15% favor dividend-paying stocks, while 14% are favoring value, 6% are seeking growth and 5% said large-cap stocks (without giving a preference for value or growth). Some respondents listed more than one style or asset class.

Here is a sampling of the responses:

“With increased volatility, I feel that searching for value is best for long-term growth.”
“I have increased some positions in large-cap stocks that I feel were sold off to unreasonably low levels.”
“I have not changed my strategy as I am a long-term investor.”
“I have sold most of our equities as a result of stop-loss orders.”
“I won’t be buying any stocks until I see more clarity in the market.”
“Looking for more large-cap dividend-paying stocks. I believe they will be less volatile.”

The AAII Sentiment Survey has been conducted weekly since July 1987 and asks AAII members whether they think stock prices will rise, remain essentially flat or fall over the next six months. The survey period runs from Thursday (12:01 a.m.) to Wednesday (11:59 p.m.). The survey and its results are available online at: http://www.aaii.com/sentimentsurvey.

 

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