How Investors’ Current Allocations Compare to Expectations at Beginning of 2019

Last month’s Asset Allocation Survey special question asked AAII members how their current allocation compared to their expectations at the start of 2019. Slightly less than half of all respondents (45%) said that their current allocations were in line with their expectations from the beginning of the year. Conversely, 31% of respondents stated that they have a larger allocation to equities, particularly dividend-paying stocks, than they expected at the beginning of 2019. Finally, 14% said that they are ending the year with more cash, while 10% said they are allocating more to fixed income than initially planned. Between these two groups, many cited that they are being more conservative as the year comes to an end.

Here is a sampling of the responses:

• “About the same. Age has a considerable influence on allocation even when market conditions are very favorable. If I were a young man, I would be 100% invested.”
• “Gone from a 100% ETF portfolio to adding value dividend stocks into the mix. Also increased cash to take advantage of dips if and when they occur. Much more conservative now.”
• “I have been transitioning to a more conservative portfolio, moving out of individual stocks and stock funds and into bonds and cash.”
• “Equities are higher due to the market making new highs.”
• “Right on; I rebalance my portfolio periodically using a spreadsheet to maintain a targeted asset allocation.”