Closed-End Bond Funds Versus Individual Bonds – A Case Study

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   What Bond Calls Mean for Your Cash Flow In a falling interest rate environment, or in one where interest rates have fallen in the not-too-distant past, it is especially important for investors to understand bond calls if they own individual bonds, bond funds, annuities…

 

March AAII Asset Allocation Survey: Equity Allocations Reach a 2-Year High

Equity allocations among individual investors rose to their highest level in nearly two years, while cash allocations fell to a two-year low. The March AAII Asset Allocation Survey also shows slightly lower fixed-income allocations. Stock and stock fund allocations rose 2.1 percentage points, to 67.6%, after having declined during the three previous months. Equity allocations…

 

AAII Asset Allocation Survey: Cash Holdings Fall to a 16-Month Low

Individual investors have reduced their cash holdings, on a percentage basis, to the smallest amount since the spring of 2015, according to the November AAII Asset Allocation Survey. Fixed-income allocations declined as well. Conversely, equity allocations rose to their second-highest level of the year. Stock and stock fund allocations rose 1.7 percentage points to 66.4%….

 

Over Half of Polled Investors Still Preferring Stocks

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…

 

Fixed-Income Allocations Rise to Three-Year High in July AAII Asset Allocation Survey

Individual investors held their largest exposure to fixed-income investments in more than three years, according to the July AAII Asset Allocation Survey. Equity allocations were unchanged, while cash levels rose. Stock and stock fund allocations stayed at 64.1% for a second month. July was the 40th consecutive month equity allocations were above their historical average…

 

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…

 

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…

 

Defined-Maturity Funds: A Bond Alternative With Compromises

This article originally appeared in the October 2013 issue of the AAII Journal. Interested in the benefits that individual bonds can offer, but not ready for the complications? The hybrid defined-maturity bond funds are one alternative. What are they and what do you need to know before investing? As the name implies, defined-maturity bonds cease…