Overweight, or Underweight on Stocks? Members Weigh In


Last month’s Asset Allocation Survey special question asked AAII members if they are overweighting or underweighting stocks. Nearly 43% of respondents said they overweighting stocks. Many of these respondents cited the long-term performance of stocks, while others said they are seeking dividends or don’t view bonds as being attractive right now. Slightly more than 23% of respondents said they are underweight stocks. Valuations were the primary reason. Another 23% of respondents said they either have an appropriate allocation or are equal weight.

Here is a sampling of the responses:

  • “Overweighting stocks; bonds return nothing and will go down with rising interest rates.”
  • “Equal weighting. I’m finding fewer values as the market continues to appreciate.”
  • “Overweight due to dividend yield and a long-term view that the market will continue go up.”
  • “Underweighting due to valuations.”
  • “Neither. I’m conforming to my long-term portfolio allocation strategy.”

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