More Than Half of Investors Delaying Allocation Changes in Wake of Tariffs

This week’s Sentiment Survey special question asked AAII members what changes they have made, if any, in response to the threat of new tariffs. More than 50% of respondents say that they have made no changes yet, though many describe themselves as being more cautious as the trade war continues. Additionally, 18% of respondents say that they are avoiding Chinese stocks and/or reducing equity exposure, while 19% say that they are allocating more to bonds and/or exchange-traded funds (ETFs). Finally, 10% of respondents say that they have increased their cash holdings significantly and are waiting to make any portfolio adjustments if necessary.

Here is a sampling of the responses:

• “I have reduced exposure to some very old winners. The bull is getting long in the tooth.”
• “I am long in cash because I believe the market will be down in coming months and I want to have cash to get back in at more attractive prices.”
• “Migrated money from equities to municipal bonds. The next few months will be very volatile, and I wanted more stability in my portfolio.”
• “No changes. I think that the market will be choppy as it reacts to news rather than data. That said, bull markets only last so long and eventually this one has to end.”
• “I won’t be buying any chip-related stocks for a while. Also, I’m staying away from businesses with lots of China exposure.”

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