Although American investors have grown much more aware of the risks of investing in stocks and have lower expectations for average annual returns, they do still plan to keep them as an integral part of their retirement portfolios, according to a Vanguard  survey conducted in late May.

Ninety percent said it is important to invest in equities in the years leading up to retirement, 70% said they will continue to hold equities in retirement, and only 13% said their retirement had been permanently impaired. Sixty percent said they made no changes to their portfolios during the decline, although 21% reduced equity holdings and 5% sold all equities. Nonetheless, 17% increased their stock exposure.

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