Two out of Five Investors Made No Portfolio Changes During Fall’s Stock Price Drop

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Last month’s Asset Allocation Survey special question asked AAII members what changes, if any, they made to their portfolios in response to this fall’s drop in stock prices. Almost two of out five respondents (39%) say they didn’t make any changes. Some say they are long-term investors, while others say they don’t react to short-term volatility or have previously adjusted their portfolios. Slightly more than 30% say they bought stocks, mutual funds or exchange-traded funds (ETFs). About 10% increased their exposure to cash, while 5% boosted their exposure to bonds. Not all AAII members who took the Asset Allocation Survey answered the special question.

Here is a sampling of the responses:

  • “None. I try to avoid reacting to short-term volatility and stick with my long-term investment plan.”
  • “Held steady. I’m not trying to time the market.”
  • “I added to my dividend stock fund positions. As the market is temporarily down, I want to add additional shares.”
  • “Booked some gains and added to my position in Treasuries. I’m going for safety.”

Want to weigh in? Take the survey yourself and see results online at www.aaii.com/assetallocationsurvey

If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership.

 

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