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 was the 51st consecutive month that equity allocations were above their historical average of 60.5%.

Bond and bond fund allocations declined 0.5 percentage points to 15.0%. Fixed-income allocations were last lower in May 2009 (14.2%). The historical average is 16.0%.

Cash allocations declined by 0.9 percentage points to 16.3%. May was the 67th consecutive month that cash allocations were below their historical average of 23.5%.

Differences in the composition of which AAII members take the Asset Allocation Survey on a month-to-month basis can cause some fluctuations in the results. Nonetheless, last month’s equity allocation ranks as the 46th highest in the nearly 30 years we have conducted this survey (356 monthly readings.) The record high for equity allocations is 77.0%, reached in both January and March of 2000.

Yields on the benchmark 10-year Treasury note fell to a new 2017 low in June before rebounding late in the month. At the same time, the S&P 500 index and the Nasdaq set new highs last month. Many AAII members have described the ongoing low interest rate environment as making bonds look unattractive and pushing them to allocate more to stocks instead.

June AAII Asset Allocation Survey:

  • Stocks and stock funds: 68.8%, up 1.4 percentage points
  • Bonds and bond funds: 15.0%, down 0.5 percentage points
  • Cash: 16.3%, down 0.9 percentage points

June AAII Asset Allocation Survey details:

  • Stock Funds: 35.2%, up 2.5 percentage points
  • Stocks: 33.6%, down 1.1 percentage points
  • Bond Funds: 12.4%, up 1.0 percentage points
  • Bonds: 2.5%, down 1.5 percentage points

Historical Averages:

  • Stocks/Stock Funds: 60.5%
  • Bonds/Bond Funds: 16.0%
  • Cash: 23.5%

*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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