Majority of Investors Don’t Expect to Change Their Allocation This Year

February’s Asset Allocation Survey special question asked AAII members what allocation changes they expect to make by the end of the year. An overwhelming majority (57%) of respondents say they are not expecting to make any allocation changes by December 2020. On the other hand, 22% of respondents state that they are expecting to invest less in equities. Their rationale includes a desire to invest more conservatively as they anticipate a market correction occurring. This compares to 21% of respondents who expect to invest a greater amount in equities. Notably, nearly half of this latter group expects to specifically allocate more to income/dividend-focused investments.

Here is a sampling of the responses:

• “More conservative. Bonds up about 6%, equities down by that amount. I have started taking dividends in cash instead of reinvesting to prepare for downside buying opportunities.”
• “No significant changes planned; I’m not expecting major economic changes before the end of the year to affect my allocation.”
• “Increase stock holdings as the market tanks. It will rebound in less than 12 months.”
• “None. I am comfortable with my current allocations; however, I will continue to monitor the market and make changes if I feel they are called for.”

Want to weigh in? Take the survey yourself and see results online at www.aaii.com/assetallocationsurvey.