Two Out of Five Investors Don’t Expect to Alter Their Allocations This Year


Last month’s Asset Allocation Survey special question asked AAII members what, if any, allocation changes they expect to make this year. Two out of five respondents (40%) said they do not expect to alter their allocations or will only make small changes. Nearly 19% of respondents said they intend to boost their exposure to equities, especially if stock prices fall. Conversely, 11% say they will reduce their equity allocations. About 9% expect to increase their cash allocations. Slightly more than 8% intend to increase their exposure to fixed-income investments. Some respondents listed more than one intended change.

Here is a sampling of the responses:

  • “No changes. I’m right where I want to be.”
  • “I am waiting for the market to go down to plow the balance of my cash allocation back into the market.”
  • “Transition from bond funds into more stock funds.”
  • “Slight increase in cash via profit-taking from equities. I’m nearing retirement.”
  • “I expect the stock market’s returns will be better than bonds when measured against inflation.”

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