Chicago, IL, May 7, 2020 – In a recent survey of members of the American Association of Individual Investors (AAII), many reported buying or selling securities in reaction to the coronavirus-related volatility, but 70% said they are continuing to stick to their overall portfolio strategy.
Of the 26% of respondents who did alter their strategy, more than half said they became more conservative—increasing their cash positions, shifting more to bonds or investing in less risky stocks. Some altered their portfolios by favoring larger, dividend-paying stocks. Only about 23% said they adopted a more aggressive strategy.
The survey was conducted in mid-April to find out how AAII members were reacting to the high level of market volatility during March and the beginning of April. In response to a question about what actions they have taken, nearly 44% reported buying more stocks and/or stock funds, citing the drop in the financial markets as a good buying opportunity. Thirty-eight percent of respondents said they did not make any changes, describing themselves as long-term investors.
The survey is part of a periodic initiative to give AAII members a chance to talk about their investment decisions and challenges. Results of this survey were tabulated based on 661 responses. The average and median age of respondents was 69, with an age range from 38 to the mid-90s.
The survey also asked respondents for their opinion about how the market would do the rest of the year and what signs of recovery they are looking for. See the full article summarizing the survey responses at www.aaii.com/journal, in the recently released May 2020 AAII Journal. Included are insights from members on why they responded as they did. The article gives a clear picture of the state of mind of individual investors during this unprecedented market and economic environment.
The American Association of Individual Investors is an independent nonprofit corporation formed in 1978 for the purpose of assisting individuals in becoming effective managers of their own assets through programs of education, information and research. AAII currently serves the investment education needs of over 165,000 dues-paying members.
Learn more at www.aaii.com.