A Quarter of Investors Say Nothing Would Prompt Them to Increase Their Stock Allocations


This month’s Asset Allocation Survey special question asked AAII members what would prompt them to increase their allocation to stocks. More than a quarter of respondents (28%) say nothing. Many of these respondents either describe themselves as being fully allocated to stocks relative to their personal strategy, pleased with their current allocation or in retirement. Slightly more than 22% say a drop in stock prices, particularly one exceeding 10% or 20%, would prompt them to become buyers. Conversely, 11% say increases in stock prices and further economic growth would prompt them to become buyers. Trade policy, President Trump and the November elections are listed by 9% of all respondents. Other respondents say what would prompt them to invest more would be a drop in volatility (6%) or if they were younger in age (4%).

Here’s a sampling of the responses:

  • “Nothing. I’m currently very near the top of my self-assigned stock allocation limit.”
  • “Nothing. I’m nearing retirement and am increasing my allocation in fixed income.”
  • “A drop in equity prices of 20%. Stocks are overvalued.”
  • “Reduction of tariff-based trade war threats.”
  • “Upward movement in the stock market.”

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