May AAII Asset Allocation Survey: Fixed-Income Falls to a Two-Year Low

Individual investors’ fixed-income allocations fell to a two-year low last month, according to the May AAII Asset Allocation Survey. Both equity and cash allocations rose. Stock and stock fund allocations rebounded by 2.1 percentage points to 67.4%. The rise puts equity allocations at their second-highest level of the year. May was the 50th consecutive month…

 

April AAII Asset Allocation Survey: Highest Fixed-Income Allocations Since Last Summer

Fixed-income investments account for the largest percentage of individual investors’ portfolios since last summer, according to the April AAII Asset Allocation Survey. Also, last month equity allocations pulled back from their recent high, while cash balances rebounded. Stock and stock fund allocations fell 2.3 percentage points to 65.3%. The decline follows what had been a…

 

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…

 

How Credit Ratings Affect Bond Valuations

There is widespread misunderstanding about what credit ratings really mean, and how they affect the returns that you earn and the overall riskiness of your portfolio. Investors generally rely on bond ratings to evaluate the credit quality of specific bonds. Credit ratings indicate on a scale of high to low the probability of default; that…

 

AAII Journal April 2017 Issue Now Available

Feature Article: Portfolio Strategies » Factors Allow Investors to Think Differently About Diversification Tilting a portfolio to a small number of factors, including value and size, can increase returns while at the same time reducing risk. In This Issue: Portfolio Strategies » Asset Allocation, RMDs and Portfolio Survival A diversified portfolio not only increases return…

 

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: Fixed-Income Allocations Rise to a 6-Month High

The proportion of fixed-income investments in individual investors’ portfolios was at a six-month high last month, according to the February AAII Asset Allocation Survey. Both equity and cash allocations declined. Stock and stock fund allocations declined for a third consecutive month, falling 0.5% to 65.5%. Even with the decline, February marked the 47th consecutive month…

 

Nearly 37% of Polled Investors End Year With Expected Allocations

Last month’s Asset Allocation Survey special question asked AAII members how their allocations as of December 2016 compared to what they expected their allocations would look like at the start of the year. Nearly 37% of respondents said their allocations were similar to what they had anticipated they would be. Slightly more than 18% had…