2023-09-01 17:27:14 ET
Summary
- Individual investors’ equity allocation reached a 15-month high last month.
- Fixed-income exposure rebounded and cash allocations fell.
- Stock and stock fund allocations have remained above their historical average for 39 consecutive months.
Individual investors’ equity allocation reached a 15-month high last month. The August Asset Allocation Survey also shows fixed-income exposure rebounding and cash allocations falling.
Stock and stock fund allocations rose 0.1 percentage points to 67.1%. Though a very small increase, it was enough to put equity allocations at their highest level since May 2022, which was also 67.1%. Additionally, last month’s increase keeps stock and stock fund allocations above their historical average of 61.5% for the 39th consecutive month.
Bond and bond fund allocations increased 0.5 percentage points to 15.5%. July marked the 30th consecutive month with fixed-income allocations below their historical average of 16.0%.
Cash allocations decreased 0.6 percentage points to 17.4%. This is the smallest allocation to cash since April 2022 (17.6%). The drop keeps cash allocations below their historical average of 22.5% for the ninth consecutive month.
Though equity allocations rose last month, optimism in the weekly AAII Sentiment Survey fell back below average. Additionally, yields on the benchmark 10-year Treasury bond hit their highest level since 2007 in August.
August AAII Asset Allocation Survey results:
- Stocks and Stock Funds: 67.1%, up 0.1 percentage points
- Bonds and Bond Funds: 15.5%, up 0.5 percentage points
- Cash: 17.4%, down 0.6 percentage points
August AAII Asset Allocation Survey details:
- Stocks: 31.6%, down 0.6 percentage points
- Stock Funds: 35.6%, up 0.7 percentage points
- Bonds: 5.2%, up 0.3 percentage points
- Bond Funds: 10.3%, up 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.
For further details see:
August AAII Asset Allocation Survey: 15-Month High For Equity Allocations