July AAII Asset Allocation Survey: Cash Allocations Fall to 17½-Year Low

Last month, individual investors’ proportionate cash allocations were the smallest they’ve been in 17½ years. The July AAII Asset Allocation Survey also showed a small decline in equity holdings and a rebound in fixed-income holdings. Stock and stock fund allocations pulled back by 0.9 percentage points 67.9%. The modest decline follows what had been a…

 

Future Needs and Investments Determine Members’ Cash Allocations

Last month’s Asset Allocation Survey special question asked AAII members what determines how much they allocate to cash. More than three out five respondents (62%) said projected needs [required minimum distributions (RMDs), living expenses, emergencies, etc.] and/or future investment opportunities. Nearly 26% said their cash allocations are primarily determined by their short-term expectations for the…

 

June AAII Asset Allocation Survey: Largest Allocation to Equities Since 2005

Equity allocations among individual investors rose to their highest level in more than a decade last month. The June AAII Asset Allocation Survey also shows fixed-income holdings at a multi-year low. Stock and stock fund allocations rose by 1.4 percentage points to 68.8%. This is the largest allocation to equities since April 2005 (70.3%). June…

 

Valuation’s Usefulness for Forecasting and Setting Asset Allocation

Dividend yields, price-earnings ratios and cyclically adjusted price-earnings ratios have long been used to forecast long-term stock returns, which may lead some investors to believe that these multiples can also be valuable tools for asset allocation. A dividend yield (D/P) is defined as a company’s dividends per share divided by the current stock price; a…

 

May AAII Asset Allocation Survey: Fixed-Income Falls to a Two-Year Low

Individual investors’ fixed-income allocations fell to a two-year low last month, according to the May AAII Asset Allocation Survey. Both equity and cash allocations rose. Stock and stock fund allocations rebounded by 2.1 percentage points to 67.4%. The rise puts equity allocations at their second-highest level of the year. May was the 50th consecutive month…

 

April AAII Asset Allocation Survey: Highest Fixed-Income Allocations Since Last Summer

Fixed-income investments account for the largest percentage of individual investors’ portfolios since last summer, according to the April AAII Asset Allocation Survey. Also, last month equity allocations pulled back from their recent high, while cash balances rebounded. Stock and stock fund allocations fell 2.3 percentage points to 65.3%. The decline follows what had been a…

 

March AAII Asset Allocation Survey: Equity Allocations Reach a 2-Year High

Equity allocations among individual investors rose to their highest level in nearly two years, while cash allocations fell to a two-year low. The March AAII Asset Allocation Survey also shows slightly lower fixed-income allocations. Stock and stock fund allocations rose 2.1 percentage points, to 67.6%, after having declined during the three previous months. Equity allocations…

 

Record Highs Don’t Shake Allocations for Over Half of Surveyed Investors

Last month’s Asset Allocation Survey special question asked AAII members why or why not record highs (such as the Dow’s rise above 20,000) influence their asset allocation decisions. Slightly more than half of all respondents (53%) said that they do not alter their allocations in reaction to record highs, though their reasons varied. Several said…