1 in 3 Surveyed Plan to Increase Equity Allocations

Last month’s Asset Allocation Survey special question asked AAII members what, if any, allocation changes they expect to make during the second half of this year. One out of three respondents (33%) intend to increase their equity exposure. Several of these respondents said they would do so if stock prices were to drop by putting…

 

June AAII Asset Allocation Survey: Stock Allocations Rise

Individual investors boosted their exposure to equities while reducing their fixed-income and cash allocations last month, according to the June AAII Asset Allocation Survey. The majority of the results were recorded prior to the Brexit vote. Stock and stock fund allocations rose 1.2 percentage points, to 64.1%. The increase keeps equity allocations above their historical…

 

Why a New Asset Allocation Approach is Needed

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Why a New Allocation Approach is Needed: The traditional way of allocating portfolios costs investors significant wealth and fails to consider how risk actually occurs in the real world. In his forthcoming book, “Investing at Level3,” AAII founder James Cloonan challenges the traditional manner in which…

 

Valuing Stocks Based on Their Dividend

The subject of valuing stocks by their dividend is discussed in the June AAII Journal, which was posted to our website yesterday. Specifically, Computerized Investing editor Jaclyn McClellan takes an in-depth look at Geraldine Weiss’ approach. I’m going to extend the conversation by discussing Weiss’ and other dividend valuation strategies. Weiss used a relative valuation…

 

Two-Thirds of Survey Respondents Sticking With Stocks

May’s Asset Allocation Survey special question asked AAII members if, given $50,000, how they would invest it today. Nearly two-thirds of respondents (65%) said stocks or stock funds. Dividend-paying stocks were a particular favorite, picked by more than 11% of all respondents. Nearly 20% said they would keep some or all of the amount in…

 

May AAII Asset Allocation Survey: Fixed-Income Exposure Continues to Rise

Exposure to fixed income in individual investors’ portfolios continued to rise last month, according to the latest AAII Asset Allocation Survey. May’s increase was the ninth in the past 10 months. Cash allocations rebounded, while equity allocations declined. Stock and stock fund allocations declined 1.9 percentage points, to 62.9%. The decline follows last month’s 2016…

 

April AAII Asset Allocation Survey: Cash Allocations Decline to a Nine-Month Low

Cash holdings among individual investors are at their lowest level since last summer, according to the April AAII Asset Allocation Survey. Conversely, allocations to equities and fixed-income rose. Stock and stock fund allocations rose 0.8 percentage points, to 64.8%. Equity allocations were last higher in December 2015 (65.3%). The increase kept stock and stock fund…

 

Market Factors and Regular Rebalancing Affecting Allocation Decisions

Last month’s Asset Allocation Survey special question asked AAII members what most often causes them to alter their portfolio allocations. The largest group (14% of all respondents) cited market factors such momentum, technical analysis and valuation. More than 13% said that they periodically rebalance their portfolios or otherwise make small adjustments when their allocations stray…

 

March AAII Asset Allocation Survey: Three-Year High for Fixed-Income

Fixed-income exposure among individual investors rose last month to levels not seen since January 2015, tying a three-year high. The March AAII Asset Allocation Survey also shows higher exposure to equities and smaller cash positions. Stock and stock fund allocations rose 2.5 percentage points, to 64.0%. The rebound reversed two months of declines. It also kept…