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AAII Asset Allocation Survey: 11-Month High for Cash

Individual investors’ cash allocations rose to an 11-month high last month. At the same, equity allocations declined to their lowest level since last summer according to the April AAII Asset Allocation Survey.

Stock and stock fund allocations declined for a fourth consecutive month, falling 2.2 percentage points to 67.5%. Equity allocations were last lower in August 2017 (66.8%). Even with the continued drop, equity allocations were above their historical average of 61.0% for the 61st consecutive month.

Bond and bond fund allocations rose by a modest 0.3 percentage points to 15.9%. Fixed-income allocations were last higher in November 2017 (17.6%). The historical average is 16.0%.

Cash allocations rose 1.9 percentage points to 16.6%. This is the largest cash allocation since May 2017 (17.2%). Nonetheless, cash allocations remained below their historical average of 23.0% for the 77th consecutive month.

The declining level of exposure to equities has occurred as individual investor optimism about the short-term outlook in stock prices has been below average. Optimism in our weekly Sentiment Survey has not exceeded 38.5% since late February. It should also be noted that equity allocations were at multi-year highs this past December (72.0%) and January (71.2%).

April AAII Asset Allocation Survey results:

  • Stocks and stock funds: 67.5%, down 2.2 percentage points
  • Bonds and bond funds: 15.9%, up 0.3 percentage points
  • Cash: 16.6%, up 1.9 percentage points

April AAII Asset Allocation Survey details:

  • Stocks: 31.2%, down 1.1 percentage points
  • Stock Funds: 36.3%, down 1.1 percentage points
  • Bonds: 3.1%, up 0.6 percentage points
  • Bond Funds: 12.8%, down 0.4 percentage points

Historical Averages:

  • Stocks/Stock Funds: 61.0%
  • Bonds/Bond Funds: 16.0%
  • Cash: 23.0%

*The numbers are rounded and may not add up to 100%.

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. The survey and its results are available online at: www.aaii.com/investor-surveys.

Want to weigh in? Take the survey yourself and see results online at www.aaii.com/assetallocationsurvey

If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership.

 

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