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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