May AAII Asset Allocation Survey: Fixed-Income Exposure Continues to Rise


Exposure to fixed income in individual investors’ portfolios continued to rise last month, according to the latest AAII Asset Allocation Survey. May’s increase was the ninth in the past 10 months. Cash allocations rebounded, while equity allocations declined.

Stock and stock fund allocations declined 1.9 percentage points, to 62.9%. The decline follows last month’s 2016 high. Even with the decrease, equity allocations are above their historical average of 60.5% for the 38th consecutive month.

Bond and bond fund allocations rose up 0.2 percentage points, to 17.8%. The increase keeps fixed-income allocations at their highest level since May 2013 (18.1%). The rise also puts bond and bond fund allocations above their historical average of 16.0% for the 10th consecutive month.

Cash allocations rebounded by 1.7 percentage points, to 19.3%. The rebound occurred after cash allocations had fallen to an eight-month low in April. Even with May’s increase, cash allocations remain below their historical average of 23.5% for the 54th consecutive month.

The increase in fixed-income allocations has been gradual. Since July 2015, bond and bond fund exposure has risen by a cumulative 2.3 percentage points. Over the same period of time, stock and stock fund allocations have declined by 4.5 percentage points.

May AAII Asset Allocation Survey results:

  • Stocks and Stock Funds: 62.9%, down 1.9 percentage points
  • Bonds and Bond Funds: 17.8%, up 0.2 percentage points
  • Cash: 19.3%, up 1.7% percentage points

May AAII Asset Allocation Survey details:

  • Stocks: 31.5%, up 0.8 percentage points
  • Stock Funds: 31.4%, down 2.7 percentage points
  • Bonds: 4.4%, up 0.5 percentage points
  • Bond Funds: 13.4%, down 0.2 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.

Want to weigh in? Take the survey yourself and see results online at:

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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