This week’s Asset Allocation Survey special question asked AAII members what asset class (or classes) they would invest in today if given $50,000. Slightly more than half of all respondents (51%) said stocks. Dividend-paying stocks were particularly mentioned for their quarterly cash distributions. Growth and technology stocks were also favored. A few respondents said that there is currently no good alternative to stocks in the current environment. About 20% of respondents said stock funds (some respondents listed more than one investment in response to our open-ended question.) Cash was favored by 23% of respondents, with some saying they would wait until after the election to invest, though others said that they are expecting a drop in stock prices. Only 7% and 5%, respectively, said they would invest in bond funds or bonds.
Here is a sampling of the responses:
- “Dividend-paying stocks to take advantage of the income.”
- “I would invest in large-cap dividend stocks. There is nowhere else I can get growth, yield and a modicum of capital preservation.”
- “Cash. I’m expecting a market decline in the next six to 12 months and would invest the cash after a 10-15% drop.”
- “Technology because that’s the one place where innovation and growth can be expected.”
- “Given $50,000 today, I would hold it in cash until after the November election.”
- “Short-term tax-free municipal bond funds. This meets my need to have some liquidity with a higher return than money market funds.”
Want to weigh in? Take the survey yourself and see results online at: http://www.aaii.com/assetallocationsurvey.
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