Close to 40% of Investors Using Market Downturn to Look for Buys

For this week’s special question, we asked AAII members how they have altered their stock investing strategy in response to the coronavirus downturn. More than a quarter of all respondents (28%) stated that they are actively looking for/buying bargain stocks and 11% stated that they are looking for dividend-paying stocks. This compares to 23% of respondents who said that they are holding more cash and/or investing in commodities like gold or silver in response to the coronavirus downturn. Finally, 38% of respondents stated that they have made no changes to their investment strategy thus far. However, many in this group did state that they are considering rebalancing their portfolio earlier than initially planned.

Here is a sampling of the responses: 

• “I have not changed my investing strategy. My portfolio was designed to weather storms. Though this one may be a larger one than I had expected. I may, however, find that this is a buying opportunity at some point. I will not be selling unless it is for rebalancing purposes.”
   
• “I am buying more dividend stocks while running away from the bond and money markets.”
   
• “This is a great buying time. I have already significantly increased my holdings and have freed up more cash to invest. This is panic selling out of fear.”
   
• “I am now putting my ‘rainy-day’ fund to use. But as to the investment strategy itself, no change. A Level3 investor all the way.”

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