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How AAII members feel about current market conditions as of 2/22/2017:
Bullish 38.46%
Neutral 29.23%
Bearish 32.31%


Portfolio Observer

Popular Investment Benchmarks   (Data as of 12/31/2015)
Stocks Standard Deviation 1 yr 5 yrs 10 yrs
Large-Cap Stocks 10.46% 19.89% 13.92% 6.87%
Mid-Cap Stocks 12.29% 29.57% 13.72% 8.48%
Small-Cap Stocks 13.76% 29.98% 13.5% 7.95%
International Stocks 11.89% 10.84% 5.95% 1.11%
Emerging Markets Stocks 15.99% 24.54% 0.11% 2.27%
Fixed Income
Intermediate Bonds 3.56% -0.84% 1.19% 4.47%
Short-Term Bonds 1.05% 0.43% 0.55% 2.34%
Overall market
Vanguard Total Stock Market Index (VTSMX) 10.8% 21.58% 13.79% 7.12%

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
9.7% 20.4% 9.5% 5.6%
Moderate Investor
  • Age 35-55
  • 20+ Years Investment Horizon
7.3% 15.5% 8.1% 5.5%
Conservative Investor
  • Age 55+
  • 10+ Years Investment Horizon
5.1% 11.2% 7.0% 5.4%
 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: 2.2%
1 yr: 20.4%
5 yrs: 9.5%
10 yrs: 5.6%
Moderate Portfolio Return
YTD: 1.7%
1 yr: 15.5%
5 yrs: 8.1%
10 yrs: 5.5%
Conservative Portfolio Return
YTD: 1.1%
1 yr: 11.2%
5 yrs: 7.0%
10 yrs: 5.4%

Broad Allocation Scenarios
Aggressive Investor

Allocations

Aggressive Portfolio Return
1 yr: 20.4%
5 yrs: 9.5%
10 yrs: 5.6%

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: 15.5%
5 yrs: 8.1%
10 yrs: 5.5%

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: 11.2%
5 yrs: 7.0%
10 yrs: 5.4%

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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