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How AAII members feel about current market conditions as of 9/21/2016:
Bullish 24.83%
Neutral 36.89%
Bearish 38.28%


Portfolio Observer

Popular Investment Benchmarks   (Data as of 12/31/2015)
Stocks Standard Deviation 1 yr 5 yrs 10 yrs
Large-Cap Stocks 10.88% 12.39% 14.51% 7.39%
Mid-Cap Stocks 11.9% 11.83% 13.53% 8.79%
Small-Cap Stocks 13.23% 9.23% 13.78% 8.33%
International Stocks 12.72% 0.32% 4.99% 1.8%
Emerging Markets Stocks 16.88% 10.46% -0.57% 3.7%
Fixed Income
Intermediate Bonds 3.44% 4.4% 2.26% 4.91%
Short-Term Bonds 1.01% 1.3% 0.67% 2.52%
Overall market
Vanguard Total Stock Market Index (VTSMX) 11.06% 11.32% 14.3% 7.64%

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
10.1% 8.2% 9.5% 6.1%
Moderate Investor
  • Age 35-55
  • 20+ Years Investment Horizon
7.6% 7.7% 8.4% 6.0%
Conservative Investor
  • Age 55+
  • 10+ Years Investment Horizon
5.3% 7.1% 7.6% 5.9%
 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: 8.5%
1 yr: 8.2%
5 yrs: 9.5%
10 yrs: 6.1%
Moderate Portfolio Return
YTD: 7.5%
1 yr: 7.7%
5 yrs: 8.4%
10 yrs: 6.0%
Conservative Portfolio Return
YTD: 6.3%
1 yr: 7.1%
5 yrs: 7.6%
10 yrs: 5.9%

Broad Allocation Scenarios
Aggressive Investor

Allocations

Aggressive Portfolio Return
1 yr: 8.2%
5 yrs: 9.5%
10 yrs: 6.1%

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: 7.7%
5 yrs: 8.4%
10 yrs: 6.0%

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: 7.1%
5 yrs: 7.6%
10 yrs: 5.9%

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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