Over 40% of Investors Looking for Buys During Market Volatility

In this week’s Sentiment Survey special question, we asked AAII members how they’ve reacted to the market’s recent volatility. Nearly 41% of respondents say they are looking for more buying opportunities as the market dips. Conversely, 38% of respondents state that they have made no changes related to recent market fluctuations and believe that the market volatility will soon settle. Other respondents’ reactions include allocating a greater percentage to cash holdings. Many within this group cite ongoing concerns regarding COVID-19 and a desire to invest conservatively given the markets’ fluctuations. Finally, 12% of respondents state that they are opting to sell certain positions as market volatility increases.

Here is a sampling of the responses:

• “Have not sold anything. Not ready to buy anything until this virus scare is under control, whenever that is, sometime in the distant future.”
• “I put a lot of money into the market that I’d had sitting on the sidelines for a while. I was glad to see the market drop as it seemed too high and this drop makes it slightly more rational.”
• “Patient and waiting until the market goes up again. No need to sell. However, if some of the stocks I own fall further, I may add to my number of shares.”
• “I am staying the course. There was likely a correction in order anyway and I think the coronavirus scare broke the camel’s back.”

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