SPY - April AAII Asset Allocation Survey: Another High For Fixed-Income Exposure

2023-05-01 18:49:07 ET

Summary

• Stock and stock fund allocations fell slightly by 0.4 percentage points to 64.3%.
• Bond and bond fund allocations rose 0.6 percentage points to 15.7%.
• Cash allocations fell by 0.2 percentage points to 19.9%.

Individual investors' exposure to fixed income rose to a 26-month high last month. The April AAII Asset Allocation Survey also shows slightly lower equity allocations and approximately the same cash allocations.

Stock and stock fund allocations fell slightly by 0.4 percentage points to 64.3%. This second consecutive monthly decline follows four straight months of rising equity exposure. Nonetheless, stock and stock fund allocations are above their historical average of 61.5% for the 35th consecutive month.

Bond and bond fund allocations rose 0.6 percentage points to 15.7%. Fixed-income exposure was last higher in February 2021 at 16.0%. Bond and bond fund allocations are below their historical average of 16.0% for the 26th consecutive month.

Cash allocations fell by 0.2 percentage points to 19.9%. Cash allocations are below their historical average of 22.5% for the fifth consecutive month.

The fixed-income allocations increased as Treasury bond yields continued to pull back from their recent highs. The decline in equity allocations occurred as optimism in the weekly AAII Sentiment Survey stayed below average for the 11th consecutive week and at an unusually low level for the past three weeks.

April AAII Asset Allocation Survey results:

• Stocks and Stock Funds: 64.3%, down 0.4 percentage points.
• Bonds and Bond Funds: 15.7%, up 0.6 percentage points.
• Cash: 19.9%, down 0.2 percentage points.

April AAII Asset Allocation Survey details:

• Stocks: 30.4%, down 0.4 percentage points.
• Stock Funds: 33.9%, unchanged.
• Bonds: 4.8%, up 0.6 percentage points.
• Bond Funds: 10.9%, down 0.1 percentage points.

Historical averages:

• Stocks/Stock Funds: 61.5%.
• Bonds/Bond Funds: 16.0%.
• Cash: 22.5%.

The AAII Asset Allocation Survey has been conducted monthly since November 1987 and asks AAII members what percentage of their portfolios are allocated to stocks, stock funds, bonds, bond funds and cash.

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