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How AAII members feel about current market conditions as of 6/13/2018:
Bullish 44.78%
Neutral 33.52%
Bearish 21.70%


Portfolio Observer

Popular Investment Benchmarks   (Data as of 05/31/2018)
Stocks Standard Deviation 1 yr 5 yrs 10 yrs
Large-Cap Stocks 10.3% 14.23% 12.82% 9.01%
Mid-Cap Stocks 11.3% 14.3% 11.68% 9.44%
Small-Cap Stocks 12.28% 18.1% 11.87% 10.1%
International Stocks 11.42% 8.06% 6.01% 1.97%
Emerging Markets Stocks 15.36% 11.95% 3.77% 0.98%
Fixed Income
Intermediate Bonds 3.19% -2.02% 0.95% 3.24%
Short-Term Bonds 1.02% -0.42% 0.48% 1.39%
Overall market
Vanguard Total Stock Market Index (VTSMX) 10.41% 14.98% 12.7% 9.2%

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
9.2% 11.9% 8.9% 6.5%
Moderate Investor
  • Age 35-55
  • 20+ Years Investment Horizon
6.9% 8.7% 7.5% 6.0%
Conservative Investor
  • Age 55+
  • 10+ Years Investment Horizon
4.8% 6.4% 6.3% 5.7%
 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: 1.3%
1 yr: 11.9%
5 yrs: 8.9%
10 yrs: 6.5%
Moderate Portfolio Return
YTD: 0.7%
1 yr: 8.7%
5 yrs: 7.5%
10 yrs: 6.0%
Conservative Portfolio Return
YTD: 0.6%
1 yr: 6.4%
5 yrs: 6.3%
10 yrs: 5.7%

Broad Allocation Scenarios
Aggressive Investor

Allocations

Aggressive Portfolio Return
1 yr: 11.9%
5 yrs: 8.9%
10 yrs: 6.5%

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: 8.7%
5 yrs: 7.5%
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: 6.4%
5 yrs: 6.3%
10 yrs: 5.7%

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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