The AAII Journal recently reported on a survey it conducted to evaluate what lasting impact the 2007-2009 financial crisis has had on its members’ investing decisions.
Here are highlights of the results from 227 member respondents:
- 46% indicated that they changed their investment strategy or portfolio allocation;
- 22% described themselves as having become more cautious, patient or adoptive of a more conservative approach;
- More than 8% said they pay more attention to the market;
- Nearly 12% said the bear market has had no lasting impact on how they’ve invested since the crisis ended;
- Two out of five respondents said they have become more conservative because of their age rather than because of the crisis (median age of respondents was 70 years old);
- 13% of respondents claimed to be less tolerant and 18% claimed to have become more tolerant of downside risk because of the financial crisis;
- About 53% of respondents said they didn’t pull out any or all of their money during the bear market period of November 2007 through March 2009;
- Of those that did pull out, the survey found that 60% said that they got back to being fully invested in stocks in later than 2009, while 12% said they have never fully returned;
- 47% said they wouldn’t have changed the investment decisions they made during the final months of the bear market, while 44% they would change some decisions;
- The biggest regret (21% of respondents) was not investing more as the 2007-2009 bear market neared its bottom.