Majority of Investors Comfortable With Allocation Strategy in Current Market

Last month’s Asset Allocation Survey special question asked AAII members to describe their comfort level with their portfolio’s allocation strategy given this year’s coronavirus pandemic-related volatility. A majority of the nearly 250 responses we received said they were more or less comfortable with their allocation strategy in the current market. Specifically, 40% of respondents described their comfort level as average and 34% stated that they are very comfortable. This compares to 15% of respondents who stated that they are mildly uncomfortable with their allocation in light of this year’s volatility and 11% of respondents who stated they are very uncomfortable.

Here is a sampling of the responses: 

•  “As a long-term investor, this too will pass. I am very comfortable.”
•  “Fairly comfortable. I had to dump some losers to free up cash with which I bought some blue-chip stocks at bargain-basement prices.” 
•  “I wish I had more cash prior to the volatility; however, I maintained the course through this volatility and don’t see any changes in the near future.” 
•  “Not at all comfortable, but this is no time to sell any assets, especially those in which I would be locking in a loss.”