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How AAII members feel about current market conditions as of 7/30/2014:
Bullish 31.12%
Neutral 37.76%
Bearish 31.12%


Portfolio Observer

Popular Investment Benchmarks   (Data as of 3/31/2013)
Stocks Standard Deviation 1 yr 5 yrs 10 yrs
Large-Cap Stocks 15.01% 13.8% 5.72% 8.42%
Mid-Cap Stocks 17.93% 17.18% 9.37% 11.95%
Small-Cap Stocks 19.67% 17.95% 9.63% 12.7%
International Stocks 19.85% 11.38% -0.80% 9.45%
Emerging Markets Stocks 21.52% 1.32% 0.67% 16.56%
Fixed Income
Intermediate Bonds 3.69% 3.59% 5.08% 5.09%
Short-Term Bonds 0.96% 0.82% 2.06% 2.96%
Overall market
Vanguard Total Stock Market Index (VTSMX) 15.7% 14.28% 6.43% 9.31%

AAII Asset Allocation Models

What is your investor profile? Follow one of our recommended allocations and check back frequently for monthly return data.

Investor Profile Standard Deviation 1 yr 5 yrs 10 yrs
Aggressive Investor
  • Age 18-35
  • 30+ Years Investment Horizon
14.7% 12.6% 5.4% 10.7%
Moderate Investor
  • Age 35-55
  • 20+ Years Investment Horizon
10.8% 10.8% 5.4% 9.1%
Conservative Investor
  • Age 55+
  • 10+ Years Investment Horizon
7.0% 9.1% 5.5% 7.4%
 Suggested Allocation Breakdowns
Aggressive


   20% Large-Cap Stocks
   20% Mid-Cap Stocks
   20% Small-Cap Stocks
   20% International Stocks
   10% Emerging Markets Stocks
   10% Intermediate Bonds
   0% Short-Term Bonds
Moderate


   20% Large-Cap Stocks
   20% Mid-Cap Stocks
   10% Small-Cap Stocks
   15% International Stocks
   5% Emerging Markets Stocks
   30% Intermediate Bonds
   0% Short-Term Bonds
Conservative


   25% Large-Cap Stocks
   10% Mid-Cap Stocks
   10% Small-Cap Stocks
   5% International Stocks
   0% Emerging Markets Stocks
   40% Intermediate Bonds
   10% Short-Term Bonds
Aggressive Portfolio Return
YTD: 8.0%
1 yr: 12.6%
5 yrs: 5.4%
10 yrs: 10.7%
Moderate Portfolio Return
YTD: 6.7%
1 yr: 10.8%
5 yrs: 5.4%
10 yrs: 9.1%
Conservative Portfolio Return
YTD: 5.6%
1 yr: 9.1%
5 yrs: 5.5%
10 yrs: 7.4%

Broad Allocation Scenarios
Aggressive Investor

Allocations

Aggressive Portfolio Return
1 yr: 12.6%
5 yrs: 5.4%
10 yrs: 10.7%

Characteristics
Growth: Substantial
Income: Very Low
Risk: Substantial Year-to-Year Volatility of Portfolio Value
10% Average Annual Growth in Value
-30% Bad Year

Time Horizon
Age: often 18-35
30+Years: Long Investment Horizon
For investors who are very risk tolerant
Transition: 80% Diversified Stock
20% Fixed Income
Investors, as they age, usually transition their portfolios toward less risky and less aggressive asset allocations.

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Moderate Investor

Allocations

Moderate Portfolio Return
1 yr: 10.8%
5 yrs: 5.4%
10 yrs: 9.1%

Characteristics
Growth: Moderate
Income: Low
Risk: Moderate Year-to-Year Volatility of Portfolio Value
8% Average Annual Growth in Value
-20% Bad Year

Time Horizon
Age: often 35-55
20+Years: Mid-Term Investment Horizon
 
For investors who can tolerate some risk
Transition: 60% Diversified Stock
40% Fixed Income
Investors, as they get closer to retirement, usually transition their portfolios toward lower risk and more conservative allocations.

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Conservative Investor

Allocations
Conservative Portfolio Return
1 yr: 9.1%
5 yrs: 5.5%
10 yrs: 7.4%

Characteristics
Growth: Low
Income: Moderate
Risk: Low Year-to-Year Volatility of Portfolio Value
6% Average Annual Growth in Value
-15% Bad Year

Time Horizon
Age: often 55+
10+Years: Short-Term Investment Horizon
 
For investors who are not risk tolerant

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Investing Basics... and Beyond is an E-book you may think is only for beginning investors... but it's filled with so much sound advice that every reader can benefit from.
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